Ali Martinez suggests that Bitcoin is now in oversold conditions for the first time since August 2024.
Over the past few days, the crypto market has been thrown into a panic as Bitcoin plunged to three-month lows near the $80,000 price point amid macroeconomic and geopolitical tensions. However, it may not be all doom and gloom for the market.
Bitcoin Oversold
Amid the recent market sell-off, prominent crypto analyst Ali Martinez has suggested that Bitcoin is now in oversold conditions for the first time since August 2024.
Martinez asserted this in an X post on Thursday, February 27, citing the relative strength index, which has dropped below 30. As the analyst highlighted, Bitcoin followed up with a 33% price surge the last time this happened.
If history repeats, this could suggest a potential near-term rally to near the $115,000 price point from current levels of about $86,200.
Still, Bitcoin’s rout may not necessarily be over. In a note to investors on Wednesday, February 26, Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, warned that “the big capitulation” had yet to happen.
Citing that exchange-traded fund holders were holding significant losses, the analyst argued that he expected more selling pressure from outflows from these funds.
Meanwhile, CryptoQuant CEO Ki Young Ju has implied that Bitcoin may still have some room to fall as 30% drops from all-time highs are typical in bull markets. So far, the asset has dropped only about 25%. Young Ju highlighted that a 30% drop could take the asset to $77,000.
Nonetheless, Bitcoin is ranging near the lows around the $85,000 level at the time of writing.