BlockBeats news, on June 6, after declining approximately 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 pandemic in March 2020, indicating the market has entered an extremely oversold condition.
Analysis indicates that similar levels were previously seen during the 2020 pandemic crash and the February 2026 correction, after which Bitcoin rebounded by approximately 50% and 30%, respectively. Currently, bulls are holding the key support level at $60,000; if this level remains intact, Bitcoin could see a technical rebound toward the ~$70,650 region over the coming weeks, near the 20-day EMA. A break below $60,000, however, may lead to further downside toward the middle of the $50,000 range.
The short-term holder realized profit/loss ratio for Bitcoin has dropped to a historic low, indicating that a large number of recent buyers are exiting at a loss, and market sentiment has approached panic. Cryptocurrency analyst Scott Melker noted that approximately 5.3 million Bitcoin held long-term are currently underwater, a level higher than during the FTX collapse and the highest since the 2020 pandemic crash.
Melker said market sentiment closely aligns with price movements, with traders being extremely optimistic at the May high and falling to extreme pessimism by June 3, "which typically suggests the bottom is near—but only typically."