ProShares UltraShort Bitcoin Getting Very Oversold
In trading on Thursday, shares of the ProShares UltraShort Bitcoin ETF (Symbol: SBIT) entered into oversold territory, changing hands as low as $42.34 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 ProShares UltraShort Bitcoin, the RSI reading has hit 26.0 — by comparison, the RSI reading for the S&P 500 is currently 51.6. A bullish investor could look at SBIT's 26.0 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), SBIT's low point in its 52 week range is $23.60 per share, with $76.515 as the 52 week high point — that compares with a last trade of $42.70. ProShares UltraShort Bitcoin shares are currently trading off about 12.4% on the day.
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