Huo Xing Finance reports that crypto analyst Scott Melker revealed data showing that short-term Bitcoin holders have incurred the largest historical loss-driven sell-off, with approximately 5.3 million BTC held by long-term holders currently underwater. Market sentiment has turned extremely bearish. Additionally, Bitcoin’s daily Relative Strength Index (RSI) has dropped to around 15.5, the lowest level since the March 2020 pandemic-induced bear market, indicating extreme oversold conditions. Having broken below $60,000, the likelihood of Bitcoin testing $50,000 has increased; however, if Bitcoin can sustainably hold the key support level at $60,000, a rebound toward the 20-day EMA near $70,600 may be possible in the coming weeks.
Bitcoin RSI Hits 2020 Bear Market Low, Risk of $50K Drop Rises
MarsBitShare
Summary
Bitcoin’s RSI dropped to 15.5 on Tuesday, matching the bear market low from March 2020. Short-term holders experienced the largest loss-selling event on record, while 5.3 million BTC held in long-term wallets are currently underwater. Bitcoin news indicates the price has fallen below $60,000, increasing the risk of a drop to $50,000. A rebound to $70,600 is possible if the $60,000 support level holds.
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