Bitcoin, Major Altcoins Rebound After Oversold Signal and $200M in Liquidations

Crypto markets recovered Sunday as Bitcoin flashed an extreme oversold reading and over $200 million in liquidations eased selling pressure across major tokens amid thin weekend liquidity.

Bitcoin (BTC) traded near $86,466 as of 1:36 p.m. UTC, rising roughly 2.7% from earlier lows. Crypto analyst Ali Martinez noted at 11:19 a.m. UTC that Bitcoin had entered “extreme oversold territory” on the relative strength index (RSI), a momentum indicator that measures the speed of price changes. Readings below 30 are often seen as a signal that sellers may have pushed the market too far too quickly. Martinez highlighted that Bitcoin’s prior dips into this zone in 2023 and March 2025 were followed by short-term rebounds.

The broader market moved higher alongside Bitcoin. Total crypto market capitalization rose 3.29% over 24 hours to $2.95 trillion, with most top-20 non-stablecoin tokens posting gains.

Ether (ETH) climbed 4.5% to roughly $2,835, while Solana (SOL), BNB, Dogecoin (DOGE), Cardano (ADA), and TRON (TRX) also posted daily increases. Although many remain significantly lower over the past month, Sunday’s rally suggested that selling pressure may be easing after weeks of losses.

Zcash (ZEC) and XRP saw some of the strongest moves. XRP jumped 7.7% to around $2.04, while ZEC surged 14.1% to $574.05, extending a rally that has lifted the token 113.5% over the past month and over 922% year-to-date. Privacy-focused coins, including ZEC and Monero (XMR $395.26), have outperformed most other sectors in recent weeks.

The rebound followed a wave of derivatives liquidations. CoinGlass reported that roughly 117,928 traders were liquidated over the past 24 hours, totaling about $206.39 million, including a $3.03 million HYPE-USD position on Hyperliquid—the day’s largest single liquidation. Thin weekend liquidity likely amplified both the sell-off and the rebound, a recurring feature of Sunday trading.

Despite the bounce, market sentiment remains fragile. The Crypto Fear and Greed Index sits at 10, signaling extreme caution as traders monitor whether the latest recovery can develop into a more sustained upward trend.