Bitcoin Is Oversold, Tom Lee Sees a Strong Buy Signal

Data shows a declining bitcoin market with decreasing volumes. However, some crypto analysts see a major turning point. This is the case of Tom Lee who talks about an extremely oversold bitcoin. It would be a strong signal for those who know how to read between the lines.

Bitcoin RSI on alert: buy signal or trap?

The bitcoin RSI is below 30. This generally indicates an oversold market situation. Historically, however, this threshold precedes an average rebound of 25% within 60 days. An analysis confirmed by Julien Bittel, macro head at Global Macro Investor. Tom Lee therefore supports this view. He even speaks of an opportunity.

At the time of writing this article, the bitcoin price is $86,900. Despite this decline, some indicators suggest a return towards $87,500 on average. Reference is made notably to Bollinger Bands which imply that bitcoin could quickly reverse trend. Provided volatility remains contained and the macroeconomic context plays in its favor.

Whales are active: threat or catalyst for bitcoin?

Data shows a transfer of 260 billion dollars in BTC to Binance. This massive movement of crypto whales creates a double reading:

• either a risk of a sharp sell-off ;
• or a strategic repositioning.

For Tom Lee, this kind of maneuver often precedes an accumulation phase.

The bull cycle may therefore not be over. If liquidity conditions improve, the projection of a bitcoin at $110,000 by 2026 remains on the table. The fact is that whales do not seem to be fleeing the market. They anticipate it instead. And their behavior always strongly influences the volatility of digital assets.

The signals are therefore mixed: declining volumes and low RSI, but optimistic behaviors among large holders. Enough to nurture the idea of an imminent rebound for bitcoin, without however guaranteeing a short-term surge.

One thing is certain: the bitcoin market remains unpredictable. Some indicators however invite optimism. The question remains whether investor confidence will follow the whale’s movement or fade under volume pressure.