By News World 369 | December 2, 2025
Bitcoin's velocity relative strength index (RSI) has reached extreme oversold levels, signaling a potential bear market bottom. This rare technical signal was last observed during market bottoms in 2018 and 2022.
On-Chain Mind, a cryptocurrency analyst, reported that Bitcoin’s three-day velocity RSI dropped below 10 on the 100-point scale—the lowest reading since prior bear market bottoms. This indicator measures price momentum and is closely watched by traders to identify cyclical market turning points.
Analysts note that the current oversold conditions resemble Bitcoin chart patterns from the 2018 bear market bottom and mid-2022, approximately six months before the last long-term floor. Historically, extreme oversold readings have preceded significant recoveries in BTC price.
Despite the oversold RSI, Bitcoin's long/short ratio remains unusually high, indicating excessive bullish positions. Analysts warn that large holders could exploit this by driving prices lower to trigger liquidations, creating risks for traders attempting to catch a market bottom.
At the time of writing, Bitcoin trades at $87,498, a 2.02% increase over the past 24 hours. While the oversold velocity RSI indicates exhaustion, the elevated long/short ratio signals caution for bullish traders, suggesting potential for further downside moves.
The combination of oversold momentum and unusual long/short ratio patterns creates a complex technical landscape for BTC. Traders are advised to monitor both metrics closely when considering entry points.
Other crypto market signals, such as Bitcoin derivatives and Ethereum staking moves, also highlight ongoing volatility. Traders are advised to consider both macro trends and micro technical indicators before making decisions.
Market analysts emphasize that while RSI readings suggest exhaustion, elevated long/short ratios may allow large players to manipulate positions, creating risks for naive bullish trades.
Bitcoin remains at a critical juncture as technical indicators suggest both opportunity and risk. Close monitoring of RSI, long/short ratio, and price action is essential for all market participants.
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