Bitcoin RSI Plunges to 17, Signaling Potential Price Reversal

Edgen Crypto

·Feb 05 2026, 22:21

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Key Takeaways

Bitcoin's Relative Strength Index (RSI), a key technical indicator, has fallen to a level indicating the asset is severely oversold. This reading is one of the lowest in the cryptocurrency's history, suggesting that selling pressure may be exhausted and a price reversal could be imminent.

Bitcoin's daily RSI fell to 17 on February 5, its third-lowest reading on record, signaling an extremely oversold market condition.
Only two prior events, the 2018 bear market bottom and the March 2020 COVID-19 crash, registered a lower RSI for Bitcoin.
While extreme oversold conditions often precede sharp price bounces, they do not guarantee a definitive market bottom if underlying bearish catalysts persist.

Bitcoin RSI Plummets to 17, Its Third-Lowest Reading Ever

On February 5, 2026, Bitcoin's daily Relative Strength Index (RSI) dropped to 17, a historically significant level that marks the asset as severely oversold. The RSI is a momentum indicator that measures the speed and magnitude of price changes, with readings below 30 typically considered oversold. This latest plunge places the current market condition in rare territory, with only two other instances recording a more extreme reading: the final bottom of the 2018 bear market and the widespread panic of the March 2020 COVID-19 crash.

Extreme Oversold Signal Puts Traders on Alert for Rebound

The fall to an RSI of 17 suggests that selling pressure may be reaching a point of exhaustion. Historically, such deep oversold readings have preceded strong short-term price bounces or significant relief rallies as the balance shifts from sellers to buyers. Investors are now closely watching to see if Bitcoin follows this historical pattern, which could present a tactical opportunity. However, an oversold indicator alone does not guarantee a market bottom. If the fundamental drivers behind the recent price decline remain in place, the asset could continue to face downward pressure despite the technical signal.