Zak Mir examines the best technical indicators, which suggest that the Bitcoin Treasury Stocks have bottomed out. The selection includes Coinsilium, Satsuma Tech, Smarter Web, Tiger Royalties, Vaultz Capital, and Vault Ventures
After the massive rallies experienced earlier this year, many investors are understandably anxious about whether these stocks have hit their lows or if further declines lie ahead. Zak breaks down the technical indicators, primarily the Relative Strength Index (RSI), to help identify potential bottoming points and signs of recovery.
Understanding the RSI and Its Importance in Stock Analysis
The Relative Strength Index (RSI) is a momentum oscillator used to measure the speed and change of price movements. It ranges from 0 to 100, with readings above 50 generally indicating bullish momentum and readings below 50 suggesting bearish conditions. An RSI below 30 is typically considered oversold, potentially signaling a buying opportunity if the price is expected to rebound.
Zak emphasizes the significance of the RSI crossing above or below the neutral 50 level as a key indicator of a stock’s trend direction. For investors wondering when Bitcoin Treasury stocks might have hit bottom, watching the RSI movements offers a practical and relatively safe approach.
Coinsilium: Watching for RSI to Signal a Turnaround
Coinsilium’s shares began their rally around 3 to 4 pence when the RSI first pushed above neutral 50 RSI, marking the start of bullish momentum. The stock maintained this positive momentum until the end of the month when shares were near 30p pence. Since then, it has struggled to hold above the neutral 50 RSI level and currently sits at 39p.
For those hoping to see Coinsilium back in bull mode, the RSI needs to climb back above 50, which Zak notes appears to be several days away at this point. Alternatively, more aggressive investors might consider waiting for the RSI to dip below 30, the oversold territory last seen in September, but this is riskier.
Potential support levels to watch for Coinsilium include the 200-day moving average around 6 pence and the previous June support near 5.5 pence. These price points could be where the market finds its footing before attempting a recovery.
Satsuma: A Stronger Contender with Bullish RSI Signals
Unlike some of the other stocks, Satsuma has demonstrated a more robust RSI performance, maintaining readings above neutral 50 RSI almost continuously since early May, when shares were around 6 pence. Even with recent pullbacks, Satsuma’s RSI has bounced off the neutral 50 level, suggesting sustained bullish momentum.
The shares have broken through a line of resistance near 7.75 pence and remain above 6 pence. Zak points to a retest of the 14 pence zone, which served as resistance in July, as a key target. The RSI’s resilience above 50 is a leading indicator of potential upside for Satsuma, making it an interesting stock to watch for those seeking a turnaround story.
Smarter Web: Navigating a Painful Decline
Smarter Web’s journey has been more challenging, with the stock falling well below its previous 600 pence-plus peak. The RSI crossed above RSI 50 at the beginning of May but fell below that level by the end of June and currently RSI sits at 44.
There remains a risk of further downside, with immediate support at 180 pence—the low from the end of last month—and a secondary support level at 110 pence, which was May’s resistance. Importantly, Smarter Web has not yet closed below the 50-day moving average on an end-of-day basis, which would be a more bearish signal.
Zak advises that the safest confirmation of a turnaround would be an end-of-day close with the RSI back above 50, though this could be a few days away.
Tiger Royalties: Watching Key Support Levels
Tiger Royalties has seen its RSI break below the 50 level near 0.25 pence and currently remains below this threshold. The stock faces the risk of testing important support levels, including the May resistance around 0.15 pence and the 200-day moving average near 0.13 pence.
As with other stocks, Zak recommends waiting for a solid end-of-day close with the RSI above 50 as a more foolproof indicator of a potential recovery.
Vaultz Capital: RSI and Support Zones to Monitor
Vaultz Capital has also experienced a pullback, losing the RSI 50 level around the 20 pence zone. Its current RSI stands at 41, indicating bearish momentum but not yet oversold.
Potential support levels for Vaultz include the May resistance and the 200-day moving average, both around 6 pence. Investors should watch these zones closely as possible points where the stock might stabilize.
Vault Ventures: Searching for Stability on the Uptrend Line
Vault Ventures’ RSI has fallen below 50 into the low 40s, with the decline starting when shares were trading near 0.06 pence. Currently, the stock is attempting to find support along an uptrend line from the previous year, around 0.02 pence.
Additional support exists at the old low of 0.017 pence. For a more confident bullish signal, Zak suggests waiting for the RSI to climb back above 50 or for an end-of-day close above the 200-day moving average at 0.022 pence.
Conclusion: Patience and RSI Are Key to Identifying Bottoms
Zak Mir’s analysis underscores the importance of the RSI as a practical tool for investors watching Bitcoin Treasury stocks. While some stocks like Satsuma show promising signs of sustained bullish momentum, others such as Smarter Web and Coinsilium require more patience and cautious observation before confirming a bottom.
Key takeaways include:
- Waiting for RSI to close above 50 as a sign of a trend reversal.
- Monitoring critical support levels such as the 200-day moving averages and previous resistance zones.
- Recognizing that oversold conditions (RSI below 30) might present riskier but potentially rewarding buying opportunities.
For investors feeling anxious after recent pullbacks, this measured approach provides a clearer framework for understanding when these Bitcoin Treasury stocks might truly be bottoming out. Staying patient, watching key technical signals, and focusing on support levels will help navigate these volatile markets with greater confidence.
