Crypto markets strengthened on Sunday as Bitcoin recovered from an extreme oversold reading on the relative strength index (RSI), a zone that previously marked short-term turning points. The move followed more than 206 million dollars in liquidations across the derivatives market, helping ease selling pressure after one of the toughest weeks for digital assets this year. Bitcoin traded near 86,466 dollars early afternoon UTC, up about 2.7 percent from levels highlighted by analyst Ali Martinez. At 11:19 a.m. UTC, Martinez noted that Bitcoin had dropped into what he described as “extreme oversold territory” on the RSI, a key momentum gauge that tracks the speed of price changes on a scale of 0 to 100. Readings below 30 often signal that selling may have become excessive, and the previous two dips into this zone — in 2023 and March 2025 — were followed by short-term rebounds. The broader market climbed alongside BTC. Total crypto market capitalization rose 3.29 percent over the past 24 hours to 2.95 trillion dollars. Ether gained about 4.5 percent, while Solana, BNB, DOGE, ADA and TRX also traded higher. Despite the bounce, many tokens remain sharply lower for the month after a series of risk-off moves.
Investor Takeaway
Oversold conditions do not guarantee sustained reversals, but combined with large liquidations and thin liquidity, they often create short-lived opportunities during stressed weekends.
Liquidations Mount as Altcoins Outperform Bitcoin
Zcash and XRP saw some of the strongest moves among large-cap tokens. XRP climbed 7.7 percent to around 2.04 dollars. Zcash rose more than 14 percent to approximately 574 dollars, extending a breakout that has lifted the privacy coin 113 percent over the past month and more than 922 percent year-to-date. Other privacy-focused assets, including Monero, have also outperformed during the market’s turbulence. The rally followed a sharp burst of derivatives liquidations. CoinGlass reported that more than 117,900 traders were liquidated over the past 24 hours, totaling roughly 206.39 million dollars. The day’s largest single liquidation was a 3.03 million dollar HYPE-USD long on Hyperliquid. Thin weekend liquidity likely amplified both sides of the move — accelerating the selloff and then powering the rebound. This pattern has been increasingly common in Sunday markets as retail participation wanes and market depth thins. Despite the day’s gains, sentiment remains fragile. The Crypto Fear and Greed Index registered 10 out of 100, reflecting severe caution. Traders remain uncertain about whether Bitcoin’s bounce represents a pause in the downtrend or the beginning of a more durable recovery.
Bitcoin’s Slide Raises Pressure on Crypto Treasury Companies
Sunday’s recovery follows a bruising week in which Bitcoin dropped to a seven-month low near 80,553 dollars. The move came as global markets shunned risk, with investors rattled by stretched valuations in technology stocks and uncertainty around the timing of U.S. interest-rate cuts. Bitcoin fell 12 percent for the week and is now 12 percent lower on the year, erasing all of its prior gains. For corporate and institutional buyers, the decline is becoming more concerning. Some analysts say Bitcoin’s fall through 100,000 dollars and its approach toward the 80,000 level pushed pricing close to the average levels paid by institutional entrants. That raises the risk of forced selling by firms that manage treasury allocations or operate as public buyers of digital assets. Standard Chartered estimates that if Bitcoin stays below 90,000 dollars, roughly half of crypto treasury holdings could move underwater — a term used when asset values fall below purchase price. These companies collectively hold around 4 percent of all Bitcoin in circulation. Strategy, the most prominent of the group, has seen its shares drop 61 percent since July and nearly 40 percent year-to-date. JP Morgan warned that it could be removed from certain MSCI equity indexes, which may force passive funds to sell additional shares. Japanese counterpart Metaplanet has fallen about 80 percent from its June peak. Analysts note that crypto treasury firms often behave procyclically: they buy when prices rise and sell when prices fall. Brent Donnelly of Spectra Markets said the pattern is becoming unmistakable, pointing out that previous bear cycles saw drawdowns of 75 to 80 percent from peak to trough.
Investor Takeaway
If Bitcoin breaks decisively below 80,000 dollars, pressure on treasury-heavy firms and ETF-linked holdings could accelerate, creating feedback loops that deepen volatility.
What Comes Next for BTC and Market Risk Appetite?
Crypto’s slide has closely tracked broader risk aversion. Equity volatility has spiked, AI-related stocks have pulled back, and traders are reassessing expectations for early U.S. rate cuts. Bitcoin’s rebound from oversold levels suggests sellers may be tiring, but market structure remains thin and sentiment remains highly reactive. Roughly 1.2 trillion dollars has been erased from crypto valuations in the past six weeks, underscoring the magnitude of the correction. If Bitcoin continues to reflect macro risk appetite — as it has for much of the year — any renewed pressure in global equities or rates could sweep back into digital assets. For now, traders are watching whether the latest oversold bounce can reclaim the 90,000-dollar level and break the negative momentum that has dominated November trading.