"Bitcoin is severely oversold": Tom Lee hints at the next move

In the past 30 days, Bitcoin (BTC) has been trading below the psychological threshold of $100,000, fluctuating between $85,000 and $94,000. This flagship cryptocurrency has experienced multiple waves of sell-offs, but analysts like Fundstrat Capital's Chief Investment Officer Tom Lee still believe that a rebound is imminent.

Bitcoin RSI Indicator Suggests Possible Rebound

Lee believes that Bitcoin is "severely oversold," and points out that based on historical experience, a rebound may soon occur. Notably, Lee's comments were in response to an article by Julien Bittel, Global Macro Investor's Head of Macro Research, who analyzed Bitcoin's price action.

According to the post, Bitcoin's Relative Strength Index (RSI) is currently below 30, indicating it is in an oversold state. Historically, when Bitcoin has fallen to such extreme levels, it typically rebounds by an average of 25% within 60 days.

If this scenario unfolds, and Bitcoin's market cycle continues as shown in the chart until mid-2026, its price could rise to $110,000. However, broader financial market conditions and liquidity need to support risk assets like Bitcoin.

Overall, Bittel firmly believes that the bull market is not over, and that a rebound is still possible by 2026.

Tom Lee considers this analysis "very valuable." That is, Lee's view aligns with Bittel's, suggesting that although Bitcoin's price appears to have fallen excessively, past cycles indicate that a rebound is likely to occur.

In the Bitcoin market, whales continue to adjust their positions, making large-scale purchases. According to U.Today, Bitcoin transfers worth as much as $260.38 billion have flowed into the Binance exchange, raising concerns among traders.

If such large-scale selling occurs, it could further exacerbate the current "extremely oversold" condition of the coin. At the same time, it could also lead to a sharp price drop and threaten the $85,000 support level.

Bitcoin Price Outlook

Meanwhile, Bitcoin Bollinger Bands indicate that the asset's average trading price may be around $87,500.

The coin has not responded to profit and loss signals, instead suggesting that more macro factors are at play. This development has led industry insiders to speculate about Bitcoin's trajectory in the coming days.

As 2025 gradually enters its final two weeks of trading, given the Relative Strength Index (RSI) at 30, many expect selling pressure to decrease. The coin is likely to begin recovering before the end of the year.

At the time of writing, Bitcoin is changing with a current price of $89,972.73, up 3.11% over the past 24 hours. The coin has rebounded from a low of $86,210.18 to its current level. However, trading volume remains in negative territory, down 22.2% year-on-year to just $38.37 billion, raising concerns about whether Bitcoin can sustain its upward momentum.