Bitcoin Is Officially Oversold For The First Time In 9 Months: What This Means For Price

Bitcoin has fallen sharply over the past several days, dropping to its lowest level in six months as bearish momentum strengthens. The decline has pushed BTC below key psychological thresholds and left traders preparing for additional downside. 

Yet despite the weakness, several indicators suggest a potential opportunity is emerging beneath the surface.

Bitcoin Could Repeat History

The Relative Strength Index has entered the oversold zone for the first time in nine months, signaling extreme selling pressure. The last time Bitcoin was officially oversold was in February, a period that preceded a notable recovery. Oversold conditions often hint at incoming reversals, but timing remains uncertain.

During the previous oversold event, Bitcoin fell an additional 10% before the rebound began. A similar pattern now could send BTC toward $77,164 before buyers regain control. If the decline is contained and this deeper drop is avoided, Bitcoin may bounce sooner.

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Bitcoin RSI. Source:  TradingView

Macro momentum indicators are similarly pointing to undervaluation. Bitcoin’s MVRV Ratio sits at -14%, marking its lowest level in three years. The 30-day MVRV conveys two clear signals: holders are currently at a loss, and BTC is undervalued relative to historical norms. This environment tends to slow selling and increase accumulation.

The zone between -8% and -18% is historically known as the “opportunity zone,” a range where downside pressure typically saturates. Selling exhaustion often leads to steady accumulation, which in turn supports recovery.

Bitcoin MVRV Ratio. Source:  Santiment

BTC Price Drops To $85,000

Bitcoin trades at $85,860 at the time of writing and is holding above the crucial $85,204 support level. Based on current indicators, BTC could experience a slight further downside before staging a rebound, especially if oversold conditions intensify.

A bearish continuation may drive Bitcoin to $77,164, aligning with the RSI’s historical pattern. Another possible scenario is a slide to $80,000 if BTC loses support at $85,204 and then $82,503. Both outcomes would reflect continued selling pressure before stabilization.

Bitcoin Price Analysis. Source:  TradingView

If Bitcoin manages to bounce from current levels, it could break above $86,822 and retest $89,800. A successful move higher would allow BTC to target a flip of $91,521 into support and push toward $95,000. This would invalidate the bearish outlook and signal a stronger recovery.