Can Bitcoin sustain its rebound to 62K after being oversold

Bitcoin (BTC) experienced a significant drop on June 24, hitting a six-week low before seeing a rebound above $62,000 within 24 hours.


BTC/USD daily chart. Source:
TradingView
A popular trader named Jelle recognized that buyer interest was returning as the $60,000 zone acted as support. Jelle expressed optimism in a post on June 25, suggesting that if Bitcoin could establish a lower-timeframe higher low, the price could climb back to $63,500 by the end of the week.


BTC/USD chart. Source:
Jelle
Jelle also pointed out similarities between the oversold conditions following the drop to $58,400 on June 14 and a past Bitcoin trade around $26,000 in August 2023. Despite differences in the 2024 cycle, with Bitcoin reaching a new all-time high before a block subsidy halving, there is evidence indicating that Bitcoin’s most significant gains are still ahead.
For Jelle, the relative strength index (RSI) is a major factor to consider. The RSI is currently at a low not seen in nearly a year, suggesting that Bitcoin could experience strong upside momentum in the near future.


BTC/USD daily chart. Source:
Jelle
Historically, Bitcoin tends to show strong upside potential when the RSI is in the “oversold” zone below 70. Such readings can lead to sustained rebounds before a sustainable rally in the BTC price.
Author of “Rich Dad, Poor Dad,” Robert Kiyosaki, saw Bitcoin’s dip below $60,000 as an opportunity to increase his holdings. He advised those terrified by Bitcoin crashes to sell and hold a steady job during market downturns.
The recent Bitcoin crash was partly influenced by selling pressure from the defunct crypto exchange Mt. Gox. The Mt. Gox trustee announced plans to repay its creditors in July, which could result in repayments worth over $9 billion at current rates.
Bitcoin found support at the $60,000 level and attempted to recover the $62,000 level after the drop on June 24. Traders and analysts are closely monitoring the support area between $60,000 and $64,000, as a breach of this level could lead to deeper corrections.
Popular trader Aksel Kibar declared that Bitcoin is still in a steady uptrend despite the pullback. He emphasized the importance of the support provided by the upper boundary of the ascending parallel channel at $60,000.


BTC/USD chart. Source:
Aksel Kibar
According to CoinGlass, the largest concentrations of bids in the 24 hours prior to writing were at $60,200, $60,600, and $61,230.
This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.