In trading on Tuesday, shares of the Bitwise 10 Crypto Index ETF (Symbol: BITW) entered into oversold territory, changing hands as low as $43.18 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 Bitwise 10 Crypto Index, the RSI reading has hit 26.1 — by comparison, the RSI reading for the S&P 500 is currently 75.6.
A bullish investor could look at BITW’s 26.1 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), BITW’s low point in its 52 week range is $40.6599 per share, with $66.48 as the 52 week high point — that compares with a last trade of $43.30. Bitwise 10 Crypto Index shares are currently trading down about 5.9% on the day.
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