Bitcoin has climbed back above $87,000, reversing part of last week’s sharp drawdown and signaling renewed momentum after hitting deeply oversold levels.
Bitcoin has climbed back above $87,000, reversing part of last week’s sharp drawdown and signaling renewed momentum after hitting deeply oversold levels. The move comes as market sentiment remains stuck in “Extreme Fear” at just 13 points, but technical indicators are showing the first signs of recovery.
The latest data shows Bitcoin trading near $87,100, while short-term indicators hint that sellers may be losing control. The 14-day RSI sits at 22.65, firmly in oversold territory, a zone that has historically preceded sharp rebounds. At the same time, volatility remains high at 8.62%, underscoring the aggressive swings that have defined the past 48 hours.
Bitcoin still trades below major trend indicators: the 50-day SMA at $107,482 and the 200-day SMA at $105,108. That keeps the broader technical picture bearish for now, but the improving intraday structure suggests buyers are attempting to regain momentum.
What the Chart Shows
The TradingView chart captures Bitcoin’s wild two-day reversal:
- The drop toward the $80,800–$81,000 zone triggered heavy liquidation but also marked the exact point where buyers stepped back in.
- A strong V-shaped recovery followed, with a clean series of higher lows and higher highs, showing the market flipping from panic to accumulation.
- Throughout November 23 and early November 24, Bitcoin steadily climbed until it punched back above $87,000, completing a full recovery of the previous breakdown.
- Sharp wicks on both ends of the candles reflect high volatility and aggressive order flow as traders reposition after the extreme sell-off.
Overall, the chart shows growing strength: buyers absorbed heavy selling, flipped momentum upward, and are now battling to establish a new short-term range above $87K.
Market Outlook
With extreme fear dominating sentiment and RSI flashing oversold conditions, Bitcoin appears to be stabilizing at a key psychological level. Traders will now watch whether the recovery can extend toward $90,000, a zone that could determine if momentum shifts into a broader rebound or stalls into consolidation.
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Source: https://coindoo.com/bitcoin-reclaims-87000-as-oversold-conditions-spark-a-strong-bounce/