Bitcoin RSI Plunges to Extreme Lows, Hinting at Possible Rally
Bitcoin’s Relative Strength Index (RSI), a key momentum indicator used to measure overbought and oversold conditions, has dropped to 17 — one of the lowest readings in its history. Only the 2018 bear market bottom and the 2020 Covid crash were lower.
The cryptocurrency fell to around $65,000 on Thursday amid heavy liquidations, yet this extreme RSI suggests the market could be poised for more than a simple rebound — a potentially significant upside move may be next.
On Thursday, Bitcoin’s daily RSI hit 17.6 on a 0–100 scale. For comparison, it bottomed at 15.6 during the Covid crash and 9.5 at the 2018 market low. Both prior lows triggered major rallies: BTC rose from $3,150 to $13,800 in 2018 and from $3,900 to $65,000 in just over a year after 2020.
Thursday’s sell-off wiped out over $1.5 billion in crypto derivatives. While oversold conditions can tempt panic selling, experienced traders may see this as a rare buying opportunity, especially as liquidity between $70,000 and $80,000 has largely disappeared.
