One indicator shows Bitcoin at its third-highest oversold level ever, hinting that a sharp rebound may be imminent.

Bitcoin RSI Hits Extreme Lows, Signaling Potential for Major Upside

Bitcoin’s Relative Strength Index (RSI), a widely used technical indicator, has plunged to 17 — marking one of the most oversold readings in its history. Only the 2018 bear market bottom and the 2020 Covid crash saw lower levels.

The cryptocurrency fell to around $65,000 on Thursday amid a wave of liquidations fueled by bearish sentiment. Yet this extreme RSI reading suggests the stage may be set for more than a simple rebound — potentially a substantial rally.

Bitcoin’s daily RSI, which measures momentum and overbought or oversold conditions on a 0–100 scale, registered 17.6 Thursday. In comparison, the RSI bottomed at 15.6 during the Covid crash and 9.5 at the 2018 market low. Both past events led to sharp upside moves: BTC more than quadrupled from $3,150 to $13,800 over eight months in 2018, and surged from $3,900 to $65,000 in just over a year following the 2020 crash.

Thursday’s sell-off liquidated over $1.5 billion in crypto derivatives. While weak markets often trigger panic selling, savvy traders may view this oversold territory as a buying opportunity, particularly as liquidity between $70,000 and $80,000 has been largely cleared.

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