 ▲ Bitcoin (BTC), cryptocurrency whale/ChatGPT-generated image |
Bitcoin (BTC) has entered an extreme oversold zone, recording a historic Relative Strength Index (RSI) low of 25.7. As accumulation by whale investors has been detected, analysts suggest that the market may be nearing the end of its downtrend.
According to crypto-focused outlet NewsBTC on March 1 (local time), Bitcoin’s weekly RSI fell to 25.7, approaching its lowest level on record. The RSI measures the strength of buying and selling pressure, with readings below 30 generally considered oversold. This figure is comparable to the extreme oversold signals observed during the deep bear markets of 2018 and 2022.
The digital asset market is currently under strong downward pressure amid escalating geopolitical tensions, including attacks by the United States and Israel on Iran. Spot crypto ETFs have seen more than $4.5 billion in outflows so far this year. Market data shows that while retail investors are capitulating and locking in losses, large whale investors are absorbing the supply and focusing on buying at lower levels.
Technical analysts evaluate the current RSI level as a signal that a short-term price recovery or bottoming phase may be underway. Historically, whenever the weekly RSI has fallen to this level, it has served as a precursor to long-term price rebounds. Analytical firm NS3.AI stated that “Bitcoin is currently in the final stage of recovery and base-building,” forecasting a strong rebound once market uncertainty subsides.
In the futures market, bearish positions still dominate, leaving liquidity relatively thin. However, participants in the options market are maintaining a cautious stance while seeking a potential reversal. Continued accumulation by institutional-level investors despite record selling pressure indicates that the market structure is gradually being reshaped. The market value to realized value (MVRV) metric also supports the view that Bitcoin remains in an undervalued zone.
Ultimately, the recent crash is the result of overlapping geopolitical tensions and macroeconomic instability, yet technical indicators suggest that the bottom may be near. Whether the historically oversold RSI reading will translate into an actual price rebound is expected to be a key factor in determining the market’s direction. Bitcoin is currently passing through a period of extreme uncertainty where fear and opportunity coexist.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*