Bitcoin's relative strength index dropped to 15.5 on June 6, its most oversold reading since the March 2020 COVID crash, putting a potential rebound toward $70,000 on traders' radars.
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Bitcoin RSI hits 15.5, most oversold since 2020 as traders eye $70K
Bitcoin's daily RSI fell to 15.5 on June 6, the lowest since the 2020 COVID crash, as the token held above $60,000 support.
"Bitcoin's RSI at 17 is one of the most oversold readings in the past decade, a level previously seen during the March 2020 COVID crash and February 2026 selloff," Lark Davis, a crypto analyst, said.
The previous oversold RSI reading in March 2020 preceded a roughly 50% rebound, aided by the Federal Reserve's emergency rate cuts and quantitative easing. In February 2026, a similar RSI drop to 15.86 preceded a nearly 30% recovery toward $82,850, according to Cointelegraph data. The short-term holder realized profit/loss ratio has fallen to a new all-time low, signaling panic selling among recent buyers exiting below their cost basis.
Holding above $60,000 increases the odds of an oversold bounce toward the 20-day exponential moving average near $70,650 in the coming weeks, according to technical analysis. Roughly 5.3 million Bitcoin held by long-term holders is now underwater, the highest level since the March 2020 crash — a metric that has historically coincided with major market bottoms.
Sentiment across the broader crypto market has also hit extreme levels. Bitcoin, Ethereum and Solana have fallen between 15% and 20% over the past week, pushing sentiment into fear territory comparable to the COVID-era lows, according to Benzinga data. Ethereum's daily RSI also dropped to 17 after breaking below its February crash low.
On-chain data shows Bitcoin trading at one of its largest historical discounts relative to gold. Analysts are watching key support levels near $62,000 and $58,600, the Bitcoin Power Law support level.
The deeply oversold RSI reading typically appears near seller-exhaustion zones where short-term buyers begin positioning for a relief rebound. While macro catalysts remain uncertain, historical precedent suggests that extreme readings at these levels have preceded significant recoveries. In 2020, Bitcoin bottomed near $3,800 before rallying roughly 1,700% to nearly $69,000. After the FTX collapse, BTC bottomed near $15,500 before surging about 690% to around $126,000 in 2025.
This article is for informational purposes only and does not constitute investment advice.
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