Matrixport, a leading digital asset financial services provider, stated in a technical analysis shared today that Bitcoin’s market position remains neutral despite investors showing increased caution ahead of the upcoming US presidential elections.
Matrixport Analysis: Bitcoin Remains Neutral Amid Pre-Election Jitters
Currently, Bitcoin’s 21-day Relative Strength Index (RSI) is at 56%, well below the 70% overbought threshold. This suggests balanced momentum in the market, indicating that Bitcoin is neither overbought nor oversold.
According to Matrixport, a neutral RSI generally suggests that investors may experience less volatility in Bitcoin’s price action, potentially leading to a decrease in Bitcoin’s risk premium following the election, including a reduction in implied volatility.
This contrasts with the market turbulence in March, when Bitcoin’s RSI reached 80%, triggering a bearish trend, and the July-August period, when Bitcoin experienced a significant rally, with the RSI falling to 25%.
In light of these indicators, Matrixport’s analysis suggests that selling volatility this week could be an attractive strategy for traders.
The analysis suggests that Bitcoin’s stable position could present advantageous conditions for those looking to capitalize on its relative neutrality during this pre-election period.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/matrixport-draws-attention-to-us-elections-in-bitcoin-report-here-are-the-details/