Bitcoin oversold reaches a new high since the 2020 epidemic crash, analysts say it may face a technical rebound of $70,000

After falling by about 30% in the past month, the Bitcoin Daily Relative Strength Index (RSI) has dropped to about 15.5, the lowest level since the market crash triggered by the epidemic in March 2020, indicating that the market has entered an extremely oversold state. Analysis pointed out that similar levels occurred during the 2020 epidemic crash and the February 2026 adjustment period respectively, and then Bitcoin rebounded by about 50% and 30% respectively. At present, bulls are still holding the key support level of US$60,000. If this level continues to be effective, Bitcoin is expected to launch a technical rebound towards the area of approximately US$70,650 where the 20th EMA moving average is located in the next few weeks; if it falls below US$60,000, it may further drop to the middle of US$50,000. Short-term holders of Bitcoin have achieved a profit-to-profit ratio that has dropped to an all-time low, indicating that a large number of recent buyers are leaving the market at a loss, and market sentiment is close to panic. Crypto analyst Scott Melker said that about 5.3 million long-held bitcoins are currently in floating losses, which is higher than during the FTX crash and the highest level since the 2020 epidemic crash. Melker said market sentiment was highly synchronized with price movements, with traders extremely optimistic at their May highs and falling to extremely pessimistic on June 3."Normally this means that the bottom is not far away, but only usually so."