Matrixport: BTC is in a neutral zone before the U.S. elections, with potential for volatility selling

2024-11-04 15:35:20

Collection

ChainCatcher news, Matrixport released a chart stating that as the U.S. presidential election approaches, market traders' anxiety has increased, but BTC 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 stands in stark contrast to the bear market decline when the RSI value reached 80% in March, while a significant rebound occurred in July and August when the RSI was only 25%. Considering this situation, selling volatility this week seems to be a potentially attractive strategy.

(Source Link)

Related tags

Matrixport BTC US election

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.