Crypto Market Rebounds as Bitcoin Recovers From Oversold RSI Levels

Crypto markets surged today as Bitcoin bounced sharply from extreme oversold conditions on the Relative Strength Index (RSI), signaling renewed short-term momentum across major digital assets. Bitcoin traded near $87,423, gaining over 3% from earlier lows after analysts, including Ali Martinez, highlighted that BTC had entered a deeply oversold zone—conditions that previously preceded quick recoveries in 2023 and March 2025. His shared Glassnode chart supported the claim, showing a repeated pattern of rebounds following similar RSI signals. The move also followed fresh comments from MicroStrategy’s Michael Saylor, who reaffirmed the firm’s long-term confidence in Bitcoin.

The broader crypto market also showed strong upside momentum. According to CoinMarketCap, total market capitalization climbed nearly 3% to $2.97 trillion, with most top-20 cryptocurrencies posting daily gains. Ether, Solana, BNB, DOGE, ADA, and TRX all rebounded as selling pressure eased after several difficult weeks. However, XRP and ZEC stood out as top performers. XRP jumped over 7% to $2.07, while ZEC rallied nearly 20%, extending its massive 965% surge in 2025 and reinforcing its position as one of the strongest privacy-coin performers this year.

Part of today’s rally was driven by derivatives market liquidations. CoinGlass data showed roughly $218 million in liquidations over the last 24 hours, clearing overleveraged positions and helping price momentum recover. Despite this rebound, sentiment remains fragile: the Crypto Fear and Greed Index sits at 13, indicating extreme fear among traders.

Market analyst Ted Pillows noted that Bitcoin funding rates have turned negative even as the price rises, signaling aggressive short positions anticipating a pullback. His chart also highlighted declining open interest before a slight rebound, suggesting earlier liquidations wiped out crowded trades while fresh shorts attempt to re-enter. Pillows added that a short squeeze could push Bitcoin higher before any attempt to fill the CME gap.

Some analysts remain bullish, with attorney John Deaton predicting Bitcoin could still reach $110,000 before year-end. With shorts building and market structure resetting, today’s rebound appears fueled by oversold conditions and shifting derivatives dynamics—both of which could continue supporting upward price action if short traders become trapped.