TechFlow news, November 4 — Matrixport released a chart indicating 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, suggesting that Bitcoin is neither overbought nor oversold.
Since a neutral RSI typically indicates that traders are less susceptible to shocks during price movements, it implies that Bitcoin’s risk premium (including high implied volatility) may decline after the election.
This stands in sharp contrast to the bearish drop observed in March when the RSI reached 80%, and to the strong rebound seen in July and August when the RSI was merely 25%. Given this context, selling volatility this week appears to be a highly attractive strategy.
