An indicator suggests Bitcoin is now the third most oversold in history, signaling that a rapid upward move could follow.

Bitcoin’s RSI Signals Extreme Oversold Levels, Hinting at Potential Rally

Bitcoin’s Relative Strength Index (RSI), a popular tool used to gauge market momentum, has fallen to 17 — placing it among the most oversold levels in the cryptocurrency’s history. Only the 2018 bear market low and the 2020 Covid crash saw lower readings.

The digital asset dropped to around $65,000 on Thursday amid a wave of liquidations fueled by bearish sentiment. Yet the extreme RSI suggests the sell-off may be setting the stage for a strong rebound — potentially more than a modest bounce.

Bitcoin’s daily RSI, which measures overbought or oversold conditions on a 0–100 scale, reached 17.6 Thursday. By comparison, it bottomed at 15.6 during the Covid crash and 9.5 in 2018. Both prior lows preceded massive rallies: BTC surged from $3,150 to $13,800 over eight months in 2018 and climbed from $3,900 to $65,000 in just over a year after 2020.

Thursday’s turmoil wiped out more than $1.5 billion in crypto derivatives. While weak markets often spark panic selling, extreme oversold readings like this may present a prime buying opportunity, particularly as liquidity between $70,000 and $80,000 has largely disappeared.