Bitcoin RSI Hits Extreme Lows, Signaling Potential Big Upside

Bitcoin’s Relative Strength Index (RSI), a widely used momentum indicator, has plunged to 17, marking one of the most oversold levels in the cryptocurrency’s history. Only the 2018 bear market bottom and the 2020 Covid crash were lower.

The cryptocurrency tumbled to roughly $65,000 on Thursday amid heavy liquidations, yet the extreme RSI reading suggests the sell-off could be setting up more than a simple bounce — potentially a significant rally.

Bitcoin’s daily RSI, which tracks overbought and oversold conditions on a 0–100 scale, reached 17.6 Thursday. For reference, it bottomed at 15.6 during the 2020 crash and 9.5 in 2018. Both past lows preceded massive upside moves: BTC climbed from $3,150 to $13,800 over eight months in 2018, and from $3,900 to $65,000 within a year in 2020.

Thursday’s liquidation wave erased more than $1.5 billion across crypto derivatives. While weak markets often trigger panic selling, traders may see this extreme oversold territory as a prime opportunity, especially with liquidity between $70,000 and $80,000 now largely cleared.