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Bitcoin's RSI has smashed straight through 30 this time, firmly entering the market capitulation zone. Looking back at history, the last time it dropped this deep was at the beginning of 2023, when the price was hovering around the $25,000 level. The pattern over the past three years is quite clear—whenever the RSI breaks below 30, it's basically a signal of a short-term bottom, usually followed by a decent rebound.
Don't get me wrong, this doesn't mean an immediate reversal is coming. But for it to fall to this level, the panic selling has pretty much been flushed out. Now we're just waiting for a confirmation of the bottom; if one day there's a sudden surge in volume and a sharp move up, the rebound could be stronger than you expect. The same logic applies to Ethereum—the price action is following a similar pattern.