Analysts Eye Fresh Bitcoin Rally as RSI Hits Critical Low

In Brief

• Bitcoin’s RSI has fallen to a rare low, prompting analysts to anticipate a fresh rally.
• Several market indicators other indicators like ETF inflows support this tendency of a recovery.
• Bitcoin and other major assets have already shown early signs of recovery but a key level must be reclaimed.

Shedrach Kongvong 2025-11-26

Bitcoin’s Relative Strength Index (RSI) has plunged into one of its deepest oversold zones of the entire cycle. A level so rare that analysts say it has historically triggered powerful upside reversals. With sentiment collapsing and volatility spiking, traders are now watching closely if this same setup could ignite a fresh rally.

Fresh Data from Glassnode shows that Bitcoin’s 14-day RSI has crashed to an average reading near 20. A zone traditionally associated with extreme overselling. This is one of the lowest RSI points recorded in recent years, placing Bitcoin deep below its usual momentum thresholds.

According to the analyst who shared the data, the last two times Bitcoin entered this RSI territory, prices rebounded sharply in the days that followed. Raising the question of whether the current setup could produce a similar outcome.

Bitcoin $BTC has hit extreme oversold territory on the RSI.

In the past two cases, the market bounced soon after. pic.twitter.com/nDICqyjJkQ

— Ali (@ali_charts) November 23, 2025

Bitcoin Flashes Oversold Signal That Preceded Previous Major Rallies

Bitcoin entered a bear market last week after it closed a week below the 50-week moving average (MA). Since then, the price has continued dropping to new lows.

With the RSI reaching a significant low, analysts think a trend reversal may be close, citing other metrics that support this thesis.

After a long time, Bitcoin ETFs began seeing inflow again a few days ago, which they say is an indication of renewed investor interest.

Bitcoin ETF Flows Are Flashing Signals!!

Bitcoin ETF activity is heating up again. Big green inflow spikes often show trend reversals, while heavy red outflows reflect fear selling and panic in the market.

Right now, inflows aren’t strong enough to offset the steady outflows,… pic.twitter.com/s1wIJWi2Tk

— Mike Brown (@_mikebrownn_) November 23, 2025

The Bitcoin Fear and Greed Index has also dropped to one of the lowest levels ever, which an analyst says points to a bottom.

Crowd Sentiment: 2.2 Anxiety. The F&G Index at 13 confirms maximum retail capitulation.

When every metric screams 'Extreme Fear' the bottom is being forged.

This is where price and narrative completely decouple.

— FOMOmeter (@FOMOmeterCrypto) November 23, 2025

Early Market Reaction Shows a Rebound Already Taking Shape

Just hours after the RSI data came out, bitcoin and indeed the rest of the crypto market have staged a rally with most crypto assets turning green.

According to data from Coinmarketcap.com, Bitcoin has already surged to $87,000 at the time of this report, while Ethereum and XRP are back above the key levels of $2,800 and $2 respectively.