Bitcoin Daily RSI Plunges to Post-FTX Lows Amid "Extreme Fear" as Price Rebounds

Bitcoin's daily Relative Strength Index (RSI) has fallen to levels reminiscent of the post-FTX collapse period in late 2022, indicating a significantly oversold market. This technical signal is accompanied by the Crypto Fear and Greed Index reaching historic lows, reflecting widespread "extreme fear" among investors. Despite this intense bearish sentiment and a surge in selling volume, Bitcoin's price has demonstrated a notable bounce.

Crypto commentator "The Wolf Of All Streets" highlighted the prevailing market sentiment, stating on social media, "> It feels like bear euphoria has reached a fever pitch. Bitcoin daily RSI is lower than FTX. Fear and greed is at historic lows. People in my comments have sold everything. Selling volume today is climaxing, much higher than past few days... yet price is bouncing." This observation underscores a contrarian dynamic in the market.

Current data confirms Bitcoin's daily RSI is hovering between 21 and 30, a range traditionally associated with oversold conditions that often precede a price reversal. Concurrently, the Crypto Fear and Greed Index, which aggregates various market indicators, registers values between 10 and 15, firmly signaling "Extreme Fear." Historically, such periods of profound pessimism have been interpreted by some as potential buying opportunities.

Recent market activity reveals significant selling pressure, with reports indicating a climax in selling volume. However, this has been met with resilient buying interest, leading to a price rebound from recent lows. This suggests that despite the widespread fear and increased supply from sellers, there is sufficient demand to absorb the selling pressure, preventing a deeper market downturn.

Analysts are closely monitoring this confluence of extreme technical oversold conditions and strong market sentiment indicators. While long-term holders have contributed to recent sell-offs, the market's ability to bounce amidst such fear suggests a potential tactical bottom. The ongoing interplay between capitulation and accumulation will be crucial in determining Bitcoin's short-term trajectory.