Grayscale’s bitcoin ETF sees ‘bearish engulfing’ pattern after being its most overbought in years

After the Grayscale Bitcoin Trust ETF’s historic spike to new highs, it would be natural for investors to get spooked by a bearish daily chart pattern on the day after its most extreme “overbought” reading in more than six years.

The exchange-traded fund’s GBTC trading history — going back about nine years, well before it converted to a spot bitcoin ETF — shows that being really overbought is much more a sign of its bullish ability than a warning of an impending correction. But what might make this time different is the “bearing…