In trading on Wednesday, shares of the ProShares Bitcoin Strategy ETF (Symbol: BITO) entered into oversold territory, changing hands as low as $23.15 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 29.6 — by comparison, the RSI reading for the S&P 500 is currently 43.3.
A bullish investor could look at BITO’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), BITO’s low point in its 52 week range is $12.79 per share, with $33.79 as the 52 week high point — that compares with a last trade of $23.23. ProShares Bitcoin Strategy shares are currently trading off about 9.2% 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.
