In trading on Wednesday, shares of the ProShares Bitcoin Strategy ETF (Symbol: BITO) entered into oversold territory, changing hands as low as $8.0101 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 ProShares Bitcoin Strategy, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 45.2.
A bullish investor could look at BITO’s 29.3 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), BITO’s low point in its 52 week range is $8.0101 per share, with $23.49 as the 52 week high point — that compares with a last trade of $8.12. ProShares Bitcoin Strategy shares are currently trading off about 4.5% on the day.
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Further BITO Research:
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