Bitcoin Deeply Oversold as Price Tests Final Support Zone

Bitcoin has endured yet another difficult trading week, and as discussed in last week’s analysis, failure to reclaim $93,300 has led to a continuation of the downtrend. Selling pressure remains dominant, though market conditions may now be approaching a level of exhaustion.

A short-term recovery signal appeared earlier in the week, but it was quickly overwhelmed by persistent bearish momentum. Historically, reversal attempts in heavy downtrends tend to succeed only when multiple momentum and trend models align — and that alignment has not yet occurred.

Momentum readings have now reached extreme levels, indicating that Bitcoin is deeply oversold. These are the kinds of conditions that often precede a sharp rebound, but confirmation is still needed. In previous cycles, similar setups produced one final downward flush before meaningful recovery began.

From a technical perspective, the structure suggests Bitcoin could revisit the $91,000–$94,000 zone in the coming days. This range represents a dense cluster of prior demand, supported by both long-term trendlines and open interest data. Should the price reach this area while momentum begins to stabilize, it could mark the first sign that a bottom is forming.

That said, the comparison some analysts have drawn with late 2018’s capitulation appears limited. Today’s macro backdrop and market composition differ significantly. While the chart similarities are intriguing, they likely won’t play out identically.

Bottom line: Bitcoin is oversold but not yet confirmed for reversal. The $91,000–$94,000 region remains critical — a decisive hold there could spark the first signs of stabilization, while continued weakness would risk breaking the market’s structural integrity.