Matrixport: Bitcoin is in neutral territory ahead of the US election, with volatility selling showing potential

Odaily Planet Daily Report: Matrixport released a chart showing that as the US presidential election approaches, market traders' anxiety has risen, but Bitcoin remains in a neutral zone. Currently, Bitcoin's 21-day Relative Strength Index (RSI) has dropped to 56%, far below the 70% overbought threshold, indicating that Bitcoin is neither overbought nor oversold. Since a neutral RSI usually means that traders are less impacted by market fluctuations, a neutral RSI suggests that Bitcoin's risk premium (including high implied volatility) may decline after the election. This contrasts sharply with the bear market decline in March when the RSI reached 80%, while in July and August, a sharp rebound occurred when the RSI was only 25%. Considering this, selling volatility this week appears to be a rather attractive strategy.