GBTC Crowded With Sellers

In trading on Monday, shares of the Grayscale Bitcoin Trust ETF (Symbol: GBTC) entered into oversold territory, changing hands as low as $62.66 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 Trust, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 31.0. A bullish investor could look at GBTC's 29.5 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), GBTC's low point in its 52 week range is $39.56 per share, with $86.11 as the 52 week high point — that compares with a last trade of $63.25. Grayscale Bitcoin Trust shares are currently trading down about 7.8% on the day.

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