Bitcoin weekly RSI falls to the most oversold levels since $15K BTC price

1 hour ago

Bitcoin (BTC) traders expected a short-term bounce arsenic a cardinal BTC terms metric sank to its lowest levels successful astir 3 years. Data from Cointelegraph Markets Pro and TradingView revealed highly “oversold” conditions connected the BTC/USD comparative spot scale (RSI).

Key takeaways:

Bitcoin’s “most oversold” RSI, historically tied to large BTC terms rallies, suggests a terms reversal successful the abbreviated term.
Bitcoin’s web value-to-transaction ratio shows it is undervalued astatine existent levels.

BTC terms dip sends RSI backmost to 2023

Bitcoin’s 36% driblet to $80,500 connected Nov. 21 from its all-time precocious of $126,000 has importantly impacted high-time framework RSI.

On the play chart, the RSI fell from section highs of 64 successful September to 35 astatine the clip of writing, levels past seen successful January 2023 erstwhile Bitcoin traded astir $15,500-$17,000.

“Historically, erstwhile the play RSI tags this level, it’s clip to wage attention,” said expert Jelle successful an X station connected Friday, adding:

“Either we’re adjacent to a bottom, oregon we’re successful for a batch much symptom soon enough.”

RSI measures inclination spot and contains 3 cardinal levels for observers: the 30 oversold boundary, the 50 midpoint and the 70 overbought threshold.

When the terms crosses these levels, depending connected the direction, traders tin marque inferences astir the aboriginal of a fixed uptrend oregon downtrend. During bull markets, ETH regularly spends extended periods successful overbought territory.

“Bitcoin looks the astir oversold it’s been each cycle,” said Mister Crypto successful a Friday X post, referring to the Stochastic RSI, besides shown successful the two-week illustration below.

“A bounce is precise likely.”

Not each traders were speedy to suggest that the BTC terms was owed for a alleviation bounce owed to the overbought conditions.

“When $BTC was this oversold successful 2018, it dumped different 49%. In 2022, it dumped different 58%,” said YouTuber Lark Davis successful an X post, adding that Bitcoin could spell different 40% lower.

“These bottoms tin instrumentality mode longer to signifier than you think, and they tin bring much symptom than you think.”

As Cointelegraph reported, a dense attraction of liquidity clusters supra the spot terms supports the lawsuit of a imaginable short-term BTC/USD reversal.

Bitcoin is presently undervalued astatine $87,000

Onchain information supplier CryptoQuant has explained however Bitcoin could presently beryllium undervalued based connected its web worth to transaction (NVT), a metric that compares marketplace headdress to its existent web usage.

The illustration beneath shows that Bitcoin’s NVT Golden Cross dropped to a historically depressed level adjacent -0.6, “a portion that reflects a structural undervaluation of the network,” CryptoQuant expert MorenoDV_ said successful his latest Quicktake analysis.

The metric has accrued somewhat to -0.32 implicit the past fewer days, an denotation that the terms is opening to realign with transaction-driven fundamentals aft a crisp valuation discount.

However, “indicator remains successful antagonistic territory, meaning Bitcoin is inactive priced conservatively comparative to its web utility,” the expert said, adding:

“The contiguous setup points to a marketplace transitioning from heavy undervaluation toward equilibrium, a signifier historically associated with accumulation and structurally healthier terms discovery.”

“Price is present recovering, but valuation is inactive discounted comparative to usage,” said expert CryptosRus successful effect to MorenoDV_ analysis, adding:

“That setup has lone shown up a fistful of times successful Bitcoin’s history.”

Note that the past 2 times erstwhile the NVT Golden Cross reached specified levels were successful April 2025 and astatine the bottommost of the 2022 carnivore market, preceding 60% and 350% BTC terms rallies, respectively.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision. While we strive to supply close and timely information, Cointelegraph does not warrant the accuracy, completeness, oregon reliability of immoderate accusation successful this article. This nonfiction whitethorn incorporate forward-looking statements that are taxable to risks and uncertainties. Cointelegraph volition not beryllium liable for immoderate nonaccomplishment oregon harm arising from your reliance connected this information.

View source