Bitcoin (BTC) has taken a hit over the past two weeks, dropping more than 10% from around $98,000 to roughly $86,000. This sharp decline has pushed the world’s top cryptocurrency into an oversold zone—something we haven’t seen since August 2024. Could this be a golden buying opportunity?
Bitcoin Is Oversold – Time To Load Up?
According to veteran crypto analyst Ali Martinez, BTC is now in oversold conditions not seen since August 2024. How do we know? Well, the Relative Strength Index (RSI)—a key momentum indicator—has plunged to its lowest level in seven months.
For those new to RSI, it’s a scale from 0 to 100 that helps measure market momentum. If it’s above 70, the asset is considered overbought (potentially overheated). If it’s below 30, it’s oversold (possibly undervalued). Right now, BTC’s RSI has dipped below that critical 30 mark, signaling that the asset may be ripe for a rebound.
History has a funny way of repeating itself. The last time Bitcoin hit this kind of oversold level—in August 2024—it went on a tear, surging 33% from $49,000 to $64,000 in just two weeks. If something similar happens now, we could see BTC blasting past $110,000.
Experts Weigh In: Bullish or More Pain Ahead?
Not everyone agrees on what’s coming next. Popular crypto investor The Wolf Of All Streets pointed out a bullish divergence on Bitcoin’s RSI, saying the indicator is still making higher lows. He noted that if we see a clear “elbow up” in the next candle, it could confirm a bullish reversal. But for now, the signal isn’t fully locked in.
On the flip side, analyst Rekt Capital is eyeing a possible further drop. He highlights the Chicago Mercantile Exchange (CME) gap between $78,000 and $80,700—a level BTC hasn’t filled since it was created in November 2024. If Bitcoin follows its usual pattern of closing these gaps, we could see more downside before any recovery kicks in.
For those unfamiliar, a CME gap happens when Bitcoin closes at one price before the weekend but opens at a different price when the market reopens. These gaps often act as magnets, pulling BTC back to those levels before resuming normal trading behavior.
The Market Is Divided—So What’s Next?
Bitcoin’s recent dip has sparked debate among analysts. Some, like a former Glassnode analyst, believe the odds of entering a full-blown bear market are slim. Meanwhile, Andre Dragosch, Head of Research at Bitwise, argues that BTC might be undervalued at current prices.
Not everyone is so optimistic, though. Standard Chartered suggests we could see another 10% drop before Bitcoin stabilizes.
Despite the mixed short-term outlook, one thing remains clear: the long-term bullish case for Bitcoin is still rock solid. At the time of writing, BTC is trading at $84,963, down 2.4% in the last 24 hours.
So, is this just another shakeout before Bitcoin’s next big run, or is there more downside ahead? Only time will tell—but if history is any guide, the best opportunities often come when fear is at its peak.
