Bitcoin and the broader crypto market extended their losses overnight, reinforcing a bearish trend that has dominated price action since early October. With momentum still weak and no major catalysts in sight, traders are watching key technical levels closely for signs of a potential reversal or short-term relief rally.
Bitcoin Price Dips as Broader Crypto Market Turns Red
Bitcoin (BTC) slipped to $87,483.67, down roughly 1.5% from the intraday high reached early Wednesday. The decline was not isolated. Weakness spread across the market, pushing the CoinDesk 20 (CD20) index down 1.6% since midnight UTC, with all constituent assets trading in negative territory.
This move extends a broader downtrend that began in early October, marked by a consistent pattern of lower highs. Last week’s attempt to break above $94,700 failed, reinforcing selling pressure and keeping bitcoin below key resistance levels. As the largest cryptocurrency struggles, overall market sentiment remains cautious, with traders reluctant to step in aggressively.
Oversold Signals Offer Hope for a Short-Term Crypto Relief Rally
From a technical perspective, bitcoin remains under pressure. For a meaningful shift in momentum, BTC would need to reclaim $95,000 and ideally secure a daily close above $98,000. However, that scenario appears challenging in the near term due to a lack of strong year-end catalysts and ongoing macro uncertainty.
That said, several indicators suggest the market may be nearing exhaustion. The average crypto relative strength index (RSI) currently stands at 38.49 out of 100, placing many assets in oversold territory. Historically, such conditions can precede a short-term relief rally, even within a broader bearish trend.
While an oversold bounce is possible, analysts caution that any upside move may be temporary unless bitcoin can break and hold above major resistance levels. Until then, volatility is likely to remain elevated as traders balance oversold signals against persistent downside risks.
