Bitcoin Crisis Appears Behind Us: Oversold Conditions Indicate Relief Rally

Bitcoin's crisis may be over, as signs indicate that the worst of the panic has subsided. The cryptocurrency dropped from over $80,000 to almost $60,000 in a matter of sessions after breaking below the March-May trendline.

The sharp increase in trading activity during this decline indicates simultaneous forced sales, liquidations, and panic exits, which is often required before a significant recovery can start.

Bitcoin's momentum indicators also suggest that it may be oversold, with the daily RSI falling into the mid-20s, an area where Bitcoin rarely enters. This could lead to a relief rally at the very least.