Bitcoin (BTC) has seen a decline of more than 10% over the past two weeks, dropping from approximately $98,000 to around $86,000 as of this writing. This high selling pressure has pushed the flagship cryptocurrency to oversold levels not witnessed since August 2024.
Bitcoin Is Oversold, Time To Buy?
Seasoned crypto analyst Ali Martinez recently suggested via an X post that BTC is currently in oversold territory, with its Relative Strength Index (RSI) dropping to the lowest level seen in the last seven months.
For those unfamiliar with the concept, the RSI measures Bitcoin’s momentum on a scale from 0 to 100. Values above 70 indicate overbought conditions, while those below 30 represent oversold levels. The latest analysis shows BTC’s RSI has fallen below 30, which may suggest that the digital asset is significantly oversold.
Historically, the last time BTC was this oversold in August 2024, it led to a remarkable 33% price surge, propelling the digital asset from $49,000 to $64,000 within two weeks. If a similar upward trajectory occurs today, BTC could potentially rise to around $110,000.
Prominent crypto investor The Wolf Of All Streets has echoed these sentiments regarding Bitcoin’s RSI. In an analysis shared alongside a 4-hour chart, he noted:
Bullish divergence with oversold RSI still very much in play. At the moment, RSI still is making a higher low. We need to see a clear “elbow up” on the next candle to confirm. Nothing here yet.
On the cautionary side, crypto analyst Rekt Capital has suggested that further downside potential exists for BTC. He pointed out that BTC is nearing the completion of a gap within the Chicago Mercantile Exchange (CME) between $78,000 and $80,700, which was created back in November 2024.
For those unacquainted, a CME gap refers to the difference in Bitcoin’s trading price on the CME just before the weekend and its price upon market reopening. This gap is often believed to be filled as part of a natural market correction, serving as either a price support or resistance level.
Mixed Opinions On BTC Price Action
The recent pullback in the crypto market has resulted in a divergence of opinions among analysts. For example, a former analyst from Glassnode recently stated that the likelihood of being in a bear market is “not large.”
Moreover, recent analysis by Andre Dragosch, the European Head of Research at Bitwise, indicates that BTC may be undervalued at current market prices. In contrast, Standard Chartered forecasts that BTC could experience another 10% decline.
While the short-term outlook on Bitcoin’s price may be divided among analysts, the long-term bullish case for the digital asset remains strong. As of now, BTC is trading at $84,963, reflecting a 2.4% decrease in the past 24 hours.
