Bitcoin took a sharp hit on June 4, dropping 4.3% to $64,036 — its lowest price point in weeks. The selloff pushed the Relative Strength Index (RSI) to 18.59, a level historically associated with extreme oversold conditions. That's the kind of reading traders normally associate with a bounce, but this market has been anything but normal lately.
What the RSI reading means
The RSI is a momentum oscillator that measures the speed and magnitude of recent price changes. Anything below 30 is considered oversold, and below 20 is rare territory. A reading of 18.59 means sellers have dominated so hard that the asset is, by that metric, deeply undervalued relative to recent price action. The last time Bitcoin's RSI slid this low was during the May 2025 correction, which was followed by a 12% recovery over the next week. No guarantee history repeats, but the data is worth noting.
Why the drop happened
The facts don't point to a single trigger. No exchange outage, no regulatory bombshell, no whale liquidation reported in the public data. It's possible the move was a cascade of stop-losses getting hit as Bitcoin broke below key support levels around $66,000. Volume spiked on spot exchanges during the selloff, suggesting retail and institutional traders both ran for the exits. The timing isn't great — June is historically a choppy month for crypto, and macro uncertainty around Fed rate decisions isn't helping.
What traders are watching now
RSI at 18.59 is the headline number. But the price itself — $64,036 — sits just above the 200-day moving average, a level many chartists treat as a line in the sand. If Bitcoin holds here, the oversold reading could fuel a short squeeze. If it breaks lower, $60,000 becomes the next floor. No one has a crystal ball, but the next 24 to 48 hours should tell us whether this was a washout or the start of something uglier.
