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

Matrixport released a chart saying 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%, far below the overbought critical value of 70%, indicating that Bitcoin is neither overbought nor oversold. Since a neutral RSI usually indicates that traders are less shocked when the market changes, a neutral RSI means that Bitcoin's risk premium (including high implied volatility) may decline after the election. This is in stark contrast to the bear market decline in March when the RSI value reached 80%, and in July and August, there was a sharp rebound when the RSI was only 25%. Given this situation, selling volatility this week seems to be a very attractive strategy.