BTCC Crosses Critical Technical Indicator
In trading on Friday, shares of the Grayscale Bitcoin Covered Call ETF (Symbol: BTCC) entered into oversold territory, changing hands as low as $11.13 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 Covered Call, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 47.4. A bullish investor could look at BTCC's 27.7 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), BTCC's low point in its 52 week range is $11.13 per share, with $24.5783 as the 52 week high point — that compares with a last trade of $11.21. Grayscale Bitcoin Covered Call shares are currently trading down about 2.5% on the day.
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