Bitcoin’s oversold level reaches the highest point since the 2020 pandemic crash, with analysis suggesting it may be heading toward a technical rebound to $70,000.

BlockBeats News, June 6 — After falling about 30% over the past month, Bitcoin’s daily Relative Strength Index (RSI) has dropped to around 15.5, the lowest level since the market crash triggered by the COVID-19 pandemic in March 2020, indicating that the market has entered an extremely oversold state.

Analysis notes that similar levels have occurred during the COVID-19 selloff in 2020 and the adjustment in February 2026; afterward, Bitcoin saw rebounds of about 50% and 30%, respectively. Currently, the bulls are still holding the $60,000 key support level. If this level continues to hold, Bitcoin may see a technical rebound in the coming weeks toward the roughly $70,650 area where the 20-day EMA is located. If it breaks below $60,000, it could further slide to the mid-$50,000 range.

Bitcoin short-term holders have seen their profit/loss ratio fall to the lowest level in history, suggesting that a large number of recent buyers are exiting in a loss position and that market sentiment is nearing panic. Crypto analyst Scott Melker said that approximately 5.3 million long-term held Bitcoins are currently sitting in unrealized losses; this figure is higher than during the FTX collapse and is the highest level since the COVID-19 selloff in 2020.

Melker said that market sentiment is highly synchronized with price action: traders were extremely optimistic at the May peak, but turned extremely pessimistic after the drop on June 3. “Usually, this means the bottom is not far off, but it’s only usually the case.”