Bitcoin Oversold Level Hits New High Since 2020 Pandemic Crash, Analysis Suggests Potential for a $70,000 Technical Rebound

June 6: After a roughly 30% drop over the past month, Bitcoin’s daily Relative Strength Index (RSI) has fallen to around 15.5 — its lowest level since the March 2020 pandemic market crash, signaling the asset is in a severely oversold condition. Per analysis, comparable RSI levels were seen during the 2020 pandemic sell-off and the February 2026 correction, following which Bitcoin rallied approximately 50% and 30% respectively. Currently, bulls are holding firm at the critical $60,000 support level. If this level holds, Bitcoin is likely to stage a technical bounce toward the ~$70,650 zone (where the 20-day exponential moving average, or EMA, sits) in the coming weeks; a break below $60,000 could push it to test the mid-$50,000 range. Bitcoin’s short-term holders have seen their profit/loss ratio hit an all-time low, indicating a large number of recent buyers are exiting at a loss, and market sentiment is nearing panic. Crypto analyst Scott Melker noted that roughly 5.3 million Bitcoins held by long-term investors are currently sitting on unrealized losses — a scale larger than during the FTX collapse and the highest point since the 2020 pandemic crash. Melker added that market sentiment is highly aligned with price trends: traders were extremely optimistic at May’s peak, then hit an extreme pessimism low on June 3. He stated, “Usually, that means the bottom isn’t far away — but that’s just usually.”