Bitcoin's reliable RSI reaches a bear market bottom of $87.000

Bitcoin's Reliable RSI Variant Reaches Bear Market Bottom Zone at $87K

3 December 2025 at 09: 26

Reading time: 3 minutes

Bitcoin is currently showing a crucial signal for reaching the bear market bottom at $87.000, according to analysis suggesting that the price trend of BTC can repeat itself.

In a recent post on X, analyst On-Chain Mind noted that Bitcoin’s velocity relative strength index (RSI) – a metric that charts recent price movements – has reached rare single-digit values. This marks some of the most oversold levels ever for BTC. The Velocity RSI has now nosedived, dropping below 10/100, a feat that has only happened on a few other occasions, specifically during the bottoms of recent bear markets.

On-Chain Mind stated that the Velocity RSI on the three-day chart has reached its lowest value ever, corresponding to key bottoms in the previous three bear markets. The accompanying chart showed similar configurations at the end of the 2018 bear market and in mid-2022, six months before the recent bear market reached its long-term bottom.

The analyst describes it as one of the most reliable momentum exhaustion indicators. "It's extremely interesting, and such a signal should be taken seriously," says On-Chain Mind. Being alert to these signals can be crucial for investors in today's volatile market.

Bitcoin long/short ratio in uncharted territory

BTC's current price behavior differs from previous bearish phases, causing frustration among investors seeking stability. Not all classic price indicators react the same to the latest market movements, particularly Bitcoin's long/short ratio, a metric that measures the number of long positions versus short positions in the market.

Joao Wedson, founder and CEO of the crypto analytics platform Alphractal, noticed an unusual phenomenon this week. "Over the years, we've been able to identify strong alpha signals in the crypto market. One of the most reliable has been that when Bitcoin's long/short ratio rises above the average of major altcoins, it historically indicates a price bottom. But this time, something different is happening," he noted.

For the first time in history, BTC has maintained this ratio at an unusually high level for a significantly longer period, despite false bottoms being established in recent months while the price continued to decline. Wedson adds that this development could be confusing for bullish investors. They might overreact to rising prices while facing a "falling knife" situation. This could prompt large players to further depress the price by liquidating them.

In the current uncertain environment, it's crucial for investors to be vigilant about these indicators and review their strategies. The crypto market remains volatile and challenging, and sound insight can make the difference between profit and loss.

Frequently Asked Questions

What is the Velocity RSI and Why is it Important for Bitcoin?
The Velocity RSI measures Bitcoin's price movement over time and helps identify market sentiment. Low Velocity RSI values indicate the market may be oversold, which could signal an impending bottom.

What does the long/short ratio mean for BTC investors?
The long/short ratio provides insight into market dynamics, particularly the ratio between long and short positions. A high ratio can indicate that the majority of traders are bullish, but it can also lead to unplanned liquidations when prices fall.

How can investors prepare for current market conditions?
It's crucial to stay well-informed about market indicators and develop strategies that can withstand the crypto market's volatility. Diversifying investments and having a clear exit strategy are also recommended approaches.

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