According to BlockBeats, on June 6, after falling by about 30% in the past month, Bitcoin's daily Relative Strength Index (RSI) has dropped to about 15.5, the lowest level since the market crash triggered by the pandemic in March 2020, indicating that the market has entered an extremely oversold state.
Analysis indicates that similar levels occurred during the 2020 pandemic-induced price crash and the February 2026 correction, followed by Bitcoin rebounds of approximately 50% and 30%, respectively. Currently, bulls are holding the key support level of $60,000. If this level holds, Bitcoin is expected to see a technical rebound towards the $70,650 area, where the 20-day EMA is located, in the coming weeks. A break below $60,000 could lead to further declines towards the mid-$50,000 range.
Bitcoin short-term holders have seen their profit/loss ratios fall to historic lows, indicating that a large number of recent buyers are exiting the market at a loss, and market sentiment is approaching panic. Crypto analyst Scott Melker stated that approximately 5.3 million long-term Bitcoins are currently showing unrealized losses, a figure higher than during the FTX crash and the highest level since the 2020 pandemic-induced price drop.
Melker stated that market sentiment and price movements are highly synchronized, with traders being extremely optimistic at the May highs and falling to extreme pessimism on June 3rd. "This usually means the bottom is not far off, but it's just a common occurrence."
