Major coins decline simultaneously with technical signals turning bearish... "How long will it take to recover from oversold conditions"

Bitcoin(BTC), Ethereum(ETH), Ripple(XRP) and other major market assets are simultaneously experiencing significant declines, intensifying investor sentiment deterioration. In particular, as long-term support levels are gradually breaking down, it has become difficult to even gauge the “bottom” position. Currently, technical indicators suggest an extreme oversold condition, and understanding the RSI meaning accurately is essential to correctly interpret the market signals. The RSI(Relative Strength Index) measures the strength and direction of price movements in numerical form, helping to identify overbought and oversold states, and moves within the range of 0-100. The fact that several coins are positioned at the extreme lower end of 20-30 indicates an overselling state, which also hints at the possibility of an imminent technical rebound.

Bitcoin(BTC): Failure to defend $85,000 directly leads to the psychological M-curve support at $80,000

Bitcoin showed early-week proactive weakness, with the weekly cumulative decline exceeding 8%. Currently around $87.70K, it first gave up the 61.8% retracement of the upward trend from the April low($74,508) to the October high($126,299), falling below $94,253, then the support at $90,000 broke, causing a sharp plunge below $86,000.

The current level of $85,000 holds more significance than just a support line. If this zone is broken on the daily closing basis, market sentiment will immediately shift toward the psychological support at $80,000. Moreover, the daily RSI has fallen to around 23, signaling a clear oversold condition. Technically, a short-term correction or low-buying influx is natural at this position, but given the strong downward pressure of the current trend, it is difficult to rush to conclusions about a bottom.

If the $85,000 level is successfully defended, a short-term technical rebound attempting to regain $90,000 could occur. Whether the $90,000 level is recovered will serve as the first key indicator to determine if this decline is a “normal correction” or a “full-fledged bear market.”

Ethereum(ETH): Concerns over further decline to 61.8% retracement if $3,017 fails to recover

Ethereum has not shown signs of recovery after a 14% plunge last week, when it was blocked by the trend resistance near $3,592. Currently around $2.95K, it has fallen more than 9% this week alone, losing the previous key support at $3,017. As of Friday, it has dropped to about $2,791, making the possibility of recovering to $3,000 increasingly unlikely.

The most concerning scenario in the market is an additional decline to the 61.8% Fibonacci retracement of this wave at $2,749. Reaching this level would mean giving back a significant portion of the gains from early November, likely causing substantial psychological shock. The RSI indicator remains in an extreme oversold zone, indicating that buying sentiment is frozen.

However, if selling pressure diminishes around the mid-$2,700s, a technical rebound could occur. The primary goal at this point is a quick recovery to $3,017. Rapidly regaining this level is crucial for the market to perceive this decline as a “temporary whipsaw,” and failure to do so could result in $3,017 acting as a strong resistance zone for an extended period.

Ripple(XRP): Final defense at $1.77 after breaking below $2; success in rebound targets $2.35

Ripple failed to break above the 50-day exponential moving average(EMA) at $2.47 last week, resulting in a 7% decline, and over the past four days this week, it experienced over 10% additional selling, losing the symbolic resistance level of $2. Currently around $1.86, it remains below $1.99, showing no signs of easing selling pressure.

In case of further decline, the first support level is estimated at $1.77. Industry experts see this zone as the last defense line for profit-taking during the mid-term rally. The RSI(32) is near the oversold zone, indicating that a technical rebound and buying influx could happen at any time, but caution is advised due to the strong downward momentum.

Conversely, if the decline halts around $2 and a rebound occurs, the resistance level at $2.35 on the daily chart becomes the short-term target. Breaking through this level would confirm that the current decline is a simple correction and could open the possibility of re-entering an upward trend.