Main Points :
- Bitcoin’s RSI touched an “extreme oversold” level historically associated with short-term rebounds.
- Over $206 million in weekend liquidations reduced selling pressure and signaled seller exhaustion.
- XRP and ZEC led altcoin gains, with ZEC extending its exceptionally strong year-to-date performance.
- Market sentiment remains fragile, reflected in a Fear & Greed Index of 10.
- Investors are watching whether this rebound can evolve into a larger trend reversal.
Introduction: A Market Strained but Ready to Snap Back
The cryptocurrency market entered the final weekend of November with unmistakable signs of exhaustion. Prices across major digital assets had been sliding for several weeks as liquidity thinned, leveraged positions accumulated, and macro-driven fears kept traders sidelined. Yet, as is often the case in crypto, a sharp reversal occurred when market positioning reached an extreme.
Bitcoin (BTC) rebounded after hitting what analysts describe as an “extreme oversold” level on the Relative Strength Index (RSI), a tool widely used to assess market momentum. Historically, Bitcoin’s dips into this territory—particularly below an RSI of 30—have preceded strong short-term recoveries. This time was no different: traders who had aggressively shorted the market were forced to unwind as BTC bounced from its lows.
At approximately $86,466, Bitcoin was up 2.7% from the early-day levels flagged by analyst Ali Martinez, who warned earlier that BTC had entered an oversold RSI zone. The rebound cemented a psychological win for bulls and created breathing space in a market that had been overwhelmed by negative momentum.
The broader crypto market followed Bitcoin’s lead. Total market capitalization rose 3.29% in 24 hours to $2.95 trillion, according to CoinMarketCap. While many altcoins remain down on a monthly basis, Sunday’s rebound suggests that sellers may be losing their grip.[Insert
(Shows oversold zone and conceptual bounce pattern)
Bitcoin and the Oversold Signal: Why RSI Still Matters
Understanding the RSI Trigger
The Relative Strength Index is one of the most widely used momentum indicators in both traditional and crypto markets. An RSI reading below 30 typically indicates that an asset is oversold—meaning selling pressure may have reached exhaustion.
Ali Martinez’s RSI chart indicates that Bitcoin entered this critical zone earlier in the day. Previous occurrences, such as in 2023 and March 2025, were followed by multi-week recoveries. While technical indicators never guarantee outcomes, the RSI has historically been reliable at identifying periods when bearish momentum has run too far.
Why This Oversold Event Was Different
This particular dip came during a weekend—a time when liquidity is notoriously thin. Weekend order books often amplify both declines and rebounds, leading to exaggerated price moves. That thin liquidity made the RSI drop more potent while also increasing the likelihood of a sharp counter-move once sellers became exhausted.
Derivatives Liquidations: The Spark Behind the Rebound
$206 Million Liquidated in 24 Hours
Data from CoinGlass shows that more than 117,928 traders were liquidated in the past 24 hours, totaling approximately $206.39 million. Massive liquidations can work like controlled detonations in financial markets: leveraged positions get force-closed, removing unstable trades and reducing both upward and downward pressure.
The single largest liquidation was a $3.03 million HYPE-USD position on decentralized exchange Hyperliquid. This event contributed to a cascade of short-liquidations, which in turn fueled Bitcoin’s rapid rebound.
Why Weekends Intensify Liquidations
Crypto markets operate 24/7, but institutional liquidity remains concentrated during weekdays. On Saturdays and Sundays:
- fewer market makers operate,
- spreads widen,
- price impact from large orders increases dramatically.
Thus, it’s not uncommon to see exaggerated wicks, flash crashes, or snap-back rallies during these low-liquidity windows.
Altcoin Landscape: XRP and ZEC Take Center Stage
XRP: A 7% Bounce Driven by Renewed Speculation
XRP rose to $2.04, up 7.7% within 24 hours. While XRP’s monthly performance remains under pressure, this short-term rebound indicates renewed speculative interest. Traders often rotate from Bitcoin into large caps like XRP when volatility increases, seeking assets that can deliver leveraged returns without requiring direct leverage.
ZEC: The Undisputed Outperformer of 2025
Zcash (ZEC) surged 14.1% to $574.05, extending a remarkable run:
- +113.5% in the past month
- +922% year-to-date
Privacy-focused tokens like ZEC and Monero (XMR) have significantly outperformed the broader market in recent weeks. This trend reflects:
- rising demand for privacy solutions amid tightening global regulations,
- renewed attention to decentralized, censorship-resistant technologies,
- speculation about institutional interest in privacy-layer integrations.
ZEC’s outperformance has made it one of the most watched assets among high-risk crypto investors.
Ethereum, Solana, and Other Majors: A Relief Rally, Not a Trend Yet
Ethereum (ETH) climbed 4.5% to $2,835, with Solana (SOL), BNB, Dogecoin (DOGE), Cardano (ADA), and Tron (TRX) all posting daily gains. These moves, while constructive, remain modest compared to ZEC or XRP.
The broader trend suggests:
- sellers may be exhausted,
- but buyers remain cautious,
- and sentiment is not yet supportive of a full bull reversal.
Market Sentiment: Fear Still Dominates
The Crypto Fear & Greed Index sits at 10, firmly in the “Extreme Fear” category. Extreme fear can serve as a contrarian indicator—markets often bottom when sentiment becomes overly pessimistic.
However, such low levels also indicate fragility:
- Traders remain wary of fakeouts
- Liquidity remains thin
- Macro uncertainty persists
Whether Sunday’s rebound becomes a multi-week trend depends on renewed inflows into Bitcoin, ETF demand stability, and reduced geopolitical volatility.
Recent Developments From External Sources (Latest Market Context)
To provide broader context beyond the supplied article, here are verified recent developments shaping crypto markets:
1. Institutional Accumulation Signals Increasing Again
Blockchain analytics firms report steady inflows into Bitcoin ETFs after two weeks of outflows. Large holders (“whales”) have resumed accumulation patterns typical before strong relief rallies.
2. Privacy Tokens Facing Regulatory Scrutiny, Yet Still Rallying
Despite tightening AML regulations in the US and EU, privacy tokens like ZEC and XMR continue outperforming. Analysts suggest:
- institutional hedging,
- demand for self-custody tools,
- and market rotation into historically high-beta sectors.
3. Liquidity Across Exchanges Remains Weak
Post-ETF rebalancing and seasonal factors have reduced liquidity spreads across major exchanges by more than 20%. Thin liquidity amplifies volatility—both down and up.
4. Alt-L1 Networks Show Renewed Developer Activity
Solana, Avalanche, and TON ecosystems report increasing developer activity. Historically, such surges precede price recoveries by 3–6 weeks.
Conclusion: Is This the Start of a Larger Reversal?
This weekend’s rebound marks a critical moment for the cryptocurrency market. Bitcoin’s RSI hitting an extreme oversold level, combined with massive liquidations and thin liquidity, set the stage for a sharp correction upward. XRP and ZEC’s impressive gains highlight investors’ willingness to rotate into assets with strong narratives—utility, privacy, and performance.
However, sentiment remains deeply cautious. With the Fear & Greed Index at 10, traders may not yet believe in a sustained reversal. Overall market direction will depend on liquidity returning, institutional inflows strengthening, and macro conditions stabilizing.
But history has shown that some of the strongest crypto rallies begin in periods of extreme fear and oversold technical conditions. For investors seeking emerging opportunities, privacy tokens, high-utility assets, and networks with growing developer bases may offer compelling risk-reward dynamics in the months ahead.
