Bitcoin (BTC) has dropped over 10% in the past two weeks, decreasing from about $98,000 to around $86,000 as of this writing. The substantial selling pressure has driven the leading cryptocurrency into oversold territory not seen since August 2024.
Is Bitcoin Oversold, and Is It Time to Buy?
According to a post on X by experienced crypto analyst Ali Martinez, BTC is now in oversold territory that hasn’t been observed since August 2024. Specifically, Bitcoin’s Relative Strength Index (RSI) has reached its lowest point in seven months.
For those unfamiliar, the RSI measures the momentum of Bitcoin on a scale from 0 to 100, with values above 70 indicating overbought conditions and below 30 suggesting oversold levels. The chart below shows that BTC’s RSI has fallen below 30, signaling that the digital asset may be considerably oversold.
Interestingly, the last time BTC was this oversold—in August 2024—it resulted in a 33% price increase, taking the digital asset from $49,000 to $64,000 in just two weeks. A similar pattern today might elevate BTC to approximately $110,000.
Noted crypto investor The Wolf Of All Streets echoed similar sentiments regarding Bitcoin’s RSI. The investor shared a 4-hour chart, indicating:
Bullish divergence with oversold RSI is still in effect. Currently, the RSI is making a higher low. We need to observe a clear “elbow up” on the next candle for confirmation. Nothing definitive yet.
In contrast, crypto analyst Rekt Capital cautioned that BTC may face further decline. The analyst highlighted that BTC is nearing the Chicago Mercantile Exchange (CME) gap between $78,000 and $80,700, created in November 2024.
For those unaware, a CME gap refers to the price discrepancy between Bitcoin’s last trading price on the CME before the weekend and its price when the market resumes. It is often believed that Bitcoin tends to fill these gaps as a natural part of market correction, with the gap serving as a price support or resistance level.
Diverse Opinions on BTC Price Movement
The recent pullback in the crypto market has resulted in varied opinions among analysts. A former Glassnode analyst recently mentioned that the chances of being in a bear market are “not large.”
Similarly, a recent analysis by Andre Dragosch, European Head of Research at Bitwise, suggests that BTC may be undervalued at current market prices. However, Standard Chartered anticipates an additional 10% drop in BTC prices.
While opinions on Bitcoin’s short-term price trajectory may be mixed, the long-term bullish outlook for the digital asset remains strong. At the time of this report, BTC is trading at $84,963, reflecting a 2.4% decrease in the last 24 hours.
