[Bitcoin Oversold Levels Reach New High Since 2020 Pandemic Crash, Analysts Predict Potential Technical Rebound to $70,000] BlockBeats News, June 6: After a roughly 30% decline over the past month, Bitcoin's daily Relative Strength Index (RSI) has dropped to around 15.5, marking its lowest level since the market crash triggered by the pandemic in March 2020, indicating an extremely oversold market condition. Analysts point out that similar levels were observed during the pandemic crash in 2020 and the correction in February 2026, after which Bitcoin rebounded by approximately 50% and 30%, respectively. Currently, bulls are holding the critical $60,000 support level. If this level remains intact, Bitcoin could see a technical rebound in the coming weeks toward the 20-day EMA, located around the $70,650 region. However, if it breaks below $60,000, it may further test the mid-$50,000 range. The realized profit and loss ratio for short-term Bitcoin holders has dropped to a historic low, indicating that a large number of recent buyers are exiting at a loss, with market sentiment nearing panic levels. Crypto analyst Scott Melker noted that approximately 5.3 million long-term held Bitcoins are currently in an unrealized loss position, a figure higher than during the FTX collapse and the highest since the pandemic crash in 2020. Melker stated that market sentiment is closely aligned with price movements, with traders being extremely optimistic at the May highs and extremely pessimistic by June 3. 'This usually means the bottom is not far off, but only usually,' he added. [Original Link]