K33: Bitcoin has entered an extreme weekly oversold zone, and the selling pressure may ease, creating an opportunity for a potential rebound

K33 pointed out in its latest analysis report that Bitcoin has entered the most extreme weekly oversold range in history after experiencing several months of selling pressure. This selling pressure primarily came from long-term holders and institutional investors, but recently, this selling pressure has begun to ease, and the market is showing signs of temporary stability.

K33 noted that historical data shows that after similar extreme bearish cycles, Bitcoin often experiences a phase of rebound. The bottom formation phase still requires time, but extreme overselling, derivative deleveraging, and the recovery of long-term supply all point to a potential rebound opportunity. However, the options market shows strong bearish sentiment, with investors paying high premiums for downside protection, and the negative funding rates indicate that there is still ongoing deleveraging of long positions or demand for short positions in the market.