Bitcoin's relative strength index has fallen to its lowest level since the 2020 bear market, increasing the likelihood of a drop to $50,000.

Odaily Planet Daily News Crypto analyst Scott Melker disclosed data showing that Bitcoin short-term holders have recorded the largest loss-making sell-off in history, with approximately 5.3 million BTC held by long-term holders in a state of unrealized loss, and market sentiment has turned extremely pessimistic.

Additionally, Bitcoin's daily Relative Strength Index (RSI) has dropped to around 15.5, the lowest level since the pandemic-induced bear market in March 2020, indicating the market is in an extremely oversold condition. Having fallen below $60,000, the likelihood of Bitcoin dropping to $50,000 is increasing. However, if it can firmly hold the key support level of $60,000 in the future, it could rebound to around $70,600, near the 20-day EMA, in the coming weeks.