'Bitcoin Is Extremely Oversold': Tom Lee Hints at What's Next

In the last 30 days, Bitcoin (BTC) has traded below the psychological $100,000 level, maintaining a range of between $85,000 and $94,000. The flagship coin has faced rejection several times, but analysts like Fundstrat Capital CIO Tom Lee remain confident that a rebound is on the horizon.

Bitcoin RSI hints at rebound

Lee believes that Bitcoin is "extremely oversold" and, based on historical precedence, a rebound might follow soon. Notably, Lee was reacting to a post by Global Macro Investor Head of Macro Research Julien Bittel, who analyzed BTC’s trajectory.

As per the post, Bitcoin’s Relative Strength Index (RSI) is currently below 30, signaling oversold. Historically, when Bitcoin plunges to such extreme levels, it usually rebounds by an average of 25% within a 60-day period.

If this happens and Bitcoin’s market cycle extends, as per the chart, by mid-2026, the asset could rise toward $110,000. However, broader financial market conditions and liquidity would need to support risk assets like Bitcoin.

Overall, Bittel strongly believes that the bull market is not over, and a rebound could still occur going into 2026.

Tom Lee considers this analysis as "Good stuff." That is, Lee aligns with Bittel, insisting that although Bitcoin looks stretched to the downside, previous cycles show that a rebound is likely to occur.

On the Bitcoin market, whales continue to reposition, with massive purchases taking place. As reported by U.Today, a Bitcoin transfer worth a staggering $260.38 billion has been dumped onto the Binance exchange, sparking concern among traders.

If such a large volume is sold, it could further worsen the "extremely oversold" conditions that the coin is in at the moment. It is also likely to cause massive price slips and threaten the $85,000 support level.

Bitcoin price outlook

Meanwhile, Bitcoin’s Bollinger Bands suggest that the asset is likely to trade around the $87,500 range on average.

The coin is not responding to profit and loss signals but hints at more macro factors at play. This development has left many in the space guessing as to how BTC will fare in the coming days.

As 2025 gradually winds down into the last two weeks of trading, many anticipate the selling pressure to drop, given the RSI of 30. The coin is likely to start its recovery journey before year's end.

As of this writing, Bitcoin is changing hands at $89,972.73, which represents a 3.11% increase in the last 24 hours. The coin has rallied from a low of $86,210.18 to its current level. However, trading volume remains in the red zone by 22.2% at $38.37 billion, raising concerns if Bitcoin can sustain the rally.