Bitcoin In An Oversold Zone, Is a $100,000 Rebound Imminent?

The Bitcoin (BTC) price correction has taken a toll on traders, leading to massive sales. The slip below $80k heightened sell pressure, with analysts flagging its movement into oversold territory. When writing, the top crypto exchanges’ hands are at $83,070, a slight 1% gain in the last 24 hours. The wider market also showed recovery signs following weeks in the doldrums.

Will Bitcoin Price Reclaim $100k?

This year, Bitcoin tapped an all-time high above $108k, with an expected uptick in institutional demand. However, this bull frenzy was short-lived due to US trade wars and a subsequent decline in U.S. tech stocks. The asset’s trading over 20% below the all-time highs weakened sentiments amid bulls’ quest for a recovery. 

Digital asset analyst Crypto Dan explained that the asset is emerging into an oversold position after weeks of fear. This oversold state can trigger fresh inflows to the market as panic mode plummets. According to Dan, a critical look at whale volumes and global economic trends is important to gauge the level of a rebound.

Since the price beat the $87k mark last year, macro trends have heavily influenced the crypto market. For bulls, a recovery based on macro trends and reduced pressure from the US tariff debacle can spur the price to January levels. Apart from macro factors, on-chain factors also show attempts at a reversal.

“However, market sentiment is currently significantly weakened, and altcoins have surrendered most of their gains, leaving the majority of investors with no profits in this cycle. This suggests that even without an additional sharp decline, the market has already been sufficiently lightened, making it a favorable zone for a potential upward move without the need for further significant drops.” 

Institutional Appetite Needs To Soar

For Bitcoin price to reclaim over 20% losses, traders must record huge institutional volumes. At the moment, these investors are selling hedging against losses. Last week’s outflows amounted to a fourth consecutive decline in institutional holdings. However, some investors bought the dip in anticipation of a stronger market. 

The importance of large-scale investors cannot be overstated, especially given last year’s performance. After the approval of spot Bitcoin ETFs, traditional investors took advantage of the new window to increase their market exposure. This attracted nearly $40 billion and created demand for more digital asset-related products.