Why bitcoin’s rare oversold RSI crash signals a long, slow grind ahead

Bitcoin’s 14-day Relative Strength Index (RSI) recently fell below 30 for only the third time in its history, indicating an oversold condition. Historically, such dips in the RSI have coincided with cycle bottoms, followed by periods of consolidation before significant price recoveries. In January 2015 and December 2018, similar RSI drops were followed by eight and three months of sideways trading, respectively, before Bitcoin experienced sustained gains. Currently, Bitcoin is trading around $66,000, with market sentiment leaning towards “fear” or “extreme fear.” After peaking in October, Bitcoin has lost over 50% of its value. Based on historical patterns, this recent downturn suggests a potential consolidation phase around the $60,000 level in the coming months before the next upward movement.

(Source：CoinDesk)