On November 4, Matrixport released an analysis of today's market trends, stating that as the US presidential election approaches, market traders' anxiety has increased, but Bitcoin remains in a neutral zone. Currently, Bitcoin's 21-day Relative Strength Index (RSI) has dropped to 56%, well below the 70% overbought threshold, indicating that Bitcoin is neither overbought nor oversold.
Since a neutral RSI typically suggests that traders are less impacted by market fluctuations, a neutral RSI implies that Bitcoin's risk premium (including high implied volatility) may decrease after the election.
This contrasts with the bear market decline in March when the RSI reached 80%, and the significant rebound in July and August when the RSI was only 25%. Considering this, selling volatility appears to be a potentially attractive strategy this week.
