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Bitcoin has rebounded above $62,000 after briefly falling below the key $60,000 level. The recovery follows one of its steepest weekly declines since the 2022 crypto market crash.
BTC rose 1.89% over 24 hours to $62,187.88, while its daily Relative Strength Index fell near 15.5. That reading places Bitcoin in its most oversold position since the March 2020 market collapse.
Bitcoin’s 14-day RSI dropped far below 30, which traders commonly view as oversold territory. A reading near 15.5 suggests selling pressure reached an extreme level after BTC lost about 30% within one month.
Such conditions can trigger automatic purchases and attract traders seeking discounted entry points. Therefore, the latest advance appears driven mainly by a technical rebound rather than a clear change in wider market sentiment.
Bitcoin posted similar RSI readings during the March 2020 crash and the February 2026 correction. BTC later recovered about 50% and 30% respectively, after those periods.
However, previous rebounds do not guarantee another sustained recovery. Buyers must push the RSI above 30 and maintain stronger trading activity before the current move can show greater momentum.
Reduced leverage has also supported Bitcoin’s recovery. Open interest has fallen sharply as traders closed positions or faced liquidations during the recent market decline.
Funding rates remain negative, showing that bearish positions still control part of the derivatives market. Nevertheless, lower open interest reduces the risk of another large chain of forced long liquidations.
Nearly $7 billion in leveraged crypto positions were reportedly wiped out during the week. Long positions accounted for most losses as Bitcoin briefly dropped to $59,112, its lowest price since October 2024.
Meanwhile, the wider crypto market has started recovering. Ethereum gained more than 4%, while XRP, Solana, Cardano and BNB also reversed part of their weekly losses.
Bitcoin’s immediate direction depends heavily on the $60,000 support area. Bulls have defended that level despite heavy selling and weak market sentiment.
A sustained hold could allow BTC to test resistance near $64,100. That level matches a key Fibonacci retracement area and may determine whether the rebound can extend further.
Above that point, traders are watching the 20-day exponential moving average near $70,650. Reaching that level would still leave Bitcoin below its earlier highs, but it would mark a stronger recovery from the latest low.
Conversely, a decisive fall below $60,000 could weaken the rebound structure. Such a move may expose the mid-$50,000 region as the next possible support zone.
On-chain figures show recent Bitcoin buyers are selling at unusually large losses. The short-term holder profit-to-loss ratio has reportedly dropped to a record low, reflecting rising panic among newer investors.
Crypto analyst Scott Melker also said about 5.3 million BTC held by long-term investors currently sits at an unrealized loss. That total exceeds levels recorded after the FTX collapse and is the highest since March 2020.
Melker linked the losses with a sharp change in sentiment. “Traders were euphoric at the May peak, then hit peak despair on June 3,” he said. “That’s usually when the bottom is close. Usually.”
However, capitulation data cannot confirm that Bitcoin has reached a lasting bottom. Market attention now turns to the Federal Reserve’s June 16–17 meeting, where its rate outlook could shape demand for risk assets.
