As the 2024 U.S. presidential election approaches, market participants are increasingly worried. This anxiety is reflected in the cryptocurrency market. According to Matrixport's analysis, Bitcoin's (BTC) 21-day relative strength index (RSI) remains in the neutral zone. The current RSI is 56%, well below the overbought threshold of 70%, indicating that Bitcoin is neither overbought nor oversold.
Bitcoin’s RSI Value Draws Attention
Bitcoin’s 21-day RSI indicates that the price is not in overbought or oversold territory. In March, when the RSI reached 80%, it led to a significant drop in the cryptocurrency market.
Similarly, in July and August, when the RSI dropped to 25%, prices also saw a significant recovery. According to Matrixport’s analysis, the current neutral RSI condition makes investors less susceptible to price swings, suggesting that volatility may decrease after the election.
Volatility selling strategies gain favor
Matrixport analysts said that maintaining neutral RSI levels ahead of the 2024 U.S. presidential election highlights volatility selling as a potential strategy for this week. They expect that reduced uncertainty after the election could lead to a decline in risk premiums, prompting analysts to encourage investors to seize this opportunity.
Currently, Bitcoin is trading at $68,850, up 0.52% in the past 24 hours. The largest cryptocurrency reached $73,500 last week but has been trending downwards since then, dropping to $67,500 over the weekend. Analysts assert that for the price to enter a sustained uptrend, it must remain above the psychological barrier of $70,000 and break the previous record level of $73,750.
