Bitcoin Rebounds Above $87,000 as Oversold Indicators Hint at Recovery

Bitcoin (BTC) has climbed back above the $87,000 mark, reversing a portion of the recent sharp market decline. This move suggests renewed momentum after technical indicators showed the asset was deeply oversold.

Despite this recovery, market sentiment remains locked in "Extreme Fear" at a score of just 13 points. However, short-term technical data is showing signs of stabilization:

• The 14-day Relative Strength Index (RSI) is at 22.65, deeply in oversold territory—a level that has historically preceded strong price rebounds.
• Volatility remains high at 8.62%, confirming the rapid price swings of the past two days.

While the broader technical outlook remains bearish (as BTC is still trading below the 50-day SMA at $107,482 and the 200-day SMA at $105,108), the improving intraday price structure indicates buyers are attempting to take control.

The recent price action shows a dramatic two-day reversal:

• The initial sharp drop towards the $80,800–$81,000 range triggered heavy selling but also marked the precise point where buyers entered the market.
• A strong V-shaped recovery followed, characterized by clear higher lows and higher highs, signaling a shift from panic selling to accumulation.
• Bitcoin successfully pushed back above $87,000, fully recovering the ground lost in the preceding breakdown.
• High volatility is evident through sharp wicks on the candlesticks, reflecting aggressive order flow as traders reposition.

The chart confirms growing strength, demonstrating that buyers effectively absorbed the aggressive selling pressure and are now attempting to establish a new short-term trading range above the $87,000 level.

Market Outlook

With the RSI signaling oversold conditions and extreme fear dominating sentiment, Bitcoin appears to be stabilizing at a crucial psychological price point. The market's next test will be whether this recovery can extend towards $90,000. The price action around this level will be key in determining if the momentum leads to a broader rebound or if the asset stalls into a period of consolidation.

November 2025, Cryptoniteuae