In trading on Monday, shares of the Grayscale Bitcoin Mini Trust ETF (Symbol: BTC) entered into oversold territory, changing hands as low as $40.34 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Grayscale Bitcoin Mini Trust, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 40.9.
A bullish investor could look at BTC’s 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), BTC’s low point in its 52 week range is $33.53 per share, with $55.96 as the 52 week high point — that compares with a last trade of $40.65. Grayscale Bitcoin Mini Trust shares are currently trading trading flat on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
