June 6th, after roughly a 30% decline over the past month, Bitcoin's daily Relative Strength Index (RSI) has fallen to about 15.5, the lowest level since the market crash triggered by the COVID-19 pandemic in March 2020, indicating the market has entered an extremely oversold condition.

Analysis points out that similar levels have appeared during the COVID-19 crash in 2020 and the correction in February 2026, followed by Bitcoin experiencing rebounds of approximately 50% and 30%, respectively. Currently, the bulls are still holding the key support level of $60k. If this level remains effective, Bitcoin could technically rebound toward the $70,650 area where the 20-day EMA is located in the coming weeks; if it falls below $60k, it may further decline toward the mid-$50k range.

Short-term Bitcoin holders' profit and loss ratio has dropped to its lowest level in history, indicating that a large number of recent buyers are exiting at a loss, and market sentiment is approaching panic. Crypto analyst Scott Melker states that approximately 5.3 million long-term held Bitcoins are currently in unrealized loss, a figure higher than during the FTX collapse and the highest since the COVID-19 crash in 2020.

Melker says that market sentiment is highly synchronized with price movements, with traders being extremely optimistic at the May peak and turning extremely pessimistic by June 3rd, "which usually means the bottom is not far off, but that's just usually $BTC the case."