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Bitcoin RSI Indicator Falls to Its Lowest Level Since 2020: What Does It Mean, and Can It Recover?
Bitcoin’s drop into oversold territory has led technical indicators to begin signalling a possible recovery.
According to analysts, Bitcoin ($BTC), which has lost roughly 30% of its value over the past month, has reached its lowest Relative Strength Index (RSI) level since the pandemic-driven market crash in 2020.
Chart showing daily RSI data for $BTC.
According to the data, Bitcoin’s daily RSI fell to around 15.5, reaching its lowest level since the sharp decline in March 2020. In technical analysis, levels below 30 are considered oversold, and the current level indicates that the market is under extremely strong selling pressure.
Analysts noted that similar RSI levels were observed both during the pandemic-driven crash of 2020 and during the correction in February 2026. According to analysts, after those periods, Bitcoin recovered by around 50% and 30%, respectively. At present, the $60,000 level, closely watched by investors, is considered an important support point. If this level holds, Bitcoin is expected to begin a technical uptrend in the coming weeks towards the $70,650 area, where the 20-day exponential moving average (EMA) is located. Conversely, a break below the $60,000 support level could lead to a decline in price towards the $50,000 area.
Related news: the engineer who discovered the security vulnerability that caused a 50% drop in the price of Zcash has announced the start of research into a new altcoin!
Blockchain data also points to increasing pressure on the market. It is noted that the profit-and-loss ratio of short-term Bitcoin investors has fallen to historically low levels, suggesting that many investors who recently bought Bitcoin have sold it at a loss. Analysts say market sentiment is moving increasingly close to panic.
Crypto analyst Scott Melker said that long-term investors are currently holding around 5.3 million Bitcoin at a loss. According to Melker, this figure exceeds the levels seen during the collapse of the FTX exchange and represents the highest volume of unrealised losses recorded since the pandemic-era sell-off in 2020.
Melker noted that market sentiment and price movement are largely synchronised, saying that investors were excessively optimistic at the peaks seen in May but had shifted to extreme pessimism by 3 June. The analyst added that such changes in sentiment often indicate that market lows may not be far away, but this should not in itself be viewed as a definitive reversal signal.
See also: "Bitcoin Price Prediction: BTC Bears Eye Drop Below $60K"
