K33: Bitcoin Enters Severely Oversold Territory, With No Clear Reason for Further Selling

ChainThink reports that on March 4, according to The Block, crypto research and brokerage firm K33 stated that after months of sustained selling pressure, Bitcoin has entered one of its most oversold weekly ranges in history. There is no compelling reason to sell Bitcoin at current levels.

K33 Research Director Vetle Lunde wrote in his latest report: “If you want to be wrong, follow the crowd.” He noted that widespread pessimism prevails in the cryptocurrency derivatives market, with investor positions clearly leaning defensive. After six consecutive weeks of declines and five consecutive months of losses—the longest downward cycle in Bitcoin’s history—its weekly Relative Strength Index (RSI) recently dropped to 26.84, the third-lowest level in history.

The report indicates that this downturn was primarily driven by selling from long-term holders and institutional investors. In the fourth quarter of 2025, the supply held for more than six months declined significantly; at the same time, exchange-traded investors, such as ETF holders, reduced their holdings by nearly 100,000 BTC, and open interest in CME Bitcoin futures dropped to a two-year low. However, Lunde noted that these outflows have recently begun to slow.