Bitcoin Back in Oversold Zone: Historical Signal Points to Potential Rebound Toward $110K
According to CryptoQuant data shared by CryptosRUs, Bitcoin has re-entered its “oversold” zone, a condition that historically preceded major market rebounds. The 90-day Realized Price Gradient Oscillator has dropped to -1.27 standard deviations (STDV), meaning Bitcoin’s price has fallen well below its short-term cost basis, a sign of heavy selling pressure and potential exhaustion among traders.
Historically, this indicator has been a reliable measure of cycle bottoms. When the oscillator dipped below -1, it often marked the late phase of a correction or the formation of a local bottom.
Past Patterns Suggest Possible Recovery
Data shows that during previous drops of this magnitude, Bitcoin staged notable rebounds:
- After dipping below -1 in early 2025, BTC surged from $82K to $110K.
- A similar setup later led to a rally from $108K to $124K.
Now, with the oscillator once again beneath the -1 threshold, the pattern appears to be repeating. Analysts suggest that this could indicate a near-term bottom formation, though not necessarily an immediate reversal.
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Sellers Losing Momentum
The market’s downside momentum has been slowing, with selling pressure easing after weeks of correction from Bitcoin’s peak near $110K. Historically, such phases of seller fatigue have often aligned with accumulation periods by long-term holders, setting the stage for a rebound.
CryptosRUs noted that while this doesn’t guarantee a bottom, the technical setup mirrors prior recovery zones: price stretched to the downside, sellers retreating, and volatility compressing.
“Just watching the signal, not the noise,” the post concluded, reinforcing the focus on macro indicators rather than short-term panic.
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