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

Matrixport has released a chart indicating that as the US presidential election approaches, the anxiety of market traders 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 overbought threshold of 70%, indicating that Bitcoin is neither overbought nor oversold.

Since a neutral RSI usually indicates that traders are less impacted by market fluctuations, a neutral RSI means that Bitcoin's risk premium (including high implied volatility) may decrease after the election. This is in stark contrast to the bear market decline when the RSI value reached 80% in March, and the significant rebound when the RSI was only 25% in July and August. Considering this situation, selling volatility this week seems to be a very attractive strategy.