Bitcoin faces renewed short-term selling pressure as the asset consolidates after failing to sustain momentum above its all-time highs. Michaël van de Poppe, founder of MN Trading, identified key on-chain metrics on X that historically precede significant price recoveries. The analyst highlighted that the Relative Strength Index (RSI) on both daily and two-week timeframes has declined to levels rarely observed outside of major market bottoms. This momentum oscillator measures the speed and change of price movements, with readings below 30 typically signaling oversold conditions where an asset may be undervalued and due for a reversal. Data compiled by Woofun AI shows current RSI readings are comparable to those recorded during the depths of the 2022 bear market and the COVID-19 crash in March 2020. In both historical instances, Bitcoin staged significant recoveries over the subsequent weeks and months following similar technical setups.

Short-term traders have been liquidating positions, contributing to a cautious sentiment across the broader crypto market despite the technical signals.

However, van de Poppe argues that the on-chain picture tells a different story than the immediate price action suggests. Low RSI combined with other metrics, such as declining exchange reserves and a drop in short-term holder supply in profit, indicates that selling pressure may be exhausting itself. These specific conditions have historically attracted accumulation by long-term investors who view such environments as structural buying opportunities rather than the start of a prolonged downturn. Woofun AI notes that the convergence of these indicators provides a framework for identifying periods of potentially asymmetric risk-to-reward for market participants.

For retail and institutional investors, the signal does not guarantee an immediate price rebound, as market bottoms can be prolonged and further downside remains possible. The RSI at multi-year lows does not predict the exact timing of a recovery, but it does suggest that selling momentum is fading significantly. While short-term price action remains uncertain, on-chain indicators are increasingly pointing toward a favorable entry point for Bitcoin. Woofun AI analysis suggests that for investors with a long-term horizon, the current environment may represent a compelling accumulation zone, provided they are prepared for continued volatility. The growing chorus of analysts viewing current price weakness as a buying opportunity reinforces the narrative that structural support is forming beneath the surface.