QCP Capital: BTC has temporarily fallen back to last week's level, it is recommended to pause trading

QCP Capital stated: "Since our last post, Bitcoin has fallen below $93,000, with more than $430 million in long positions liquidated. This drop coincides with the end of five consecutive days of net inflows into the spot ETF, which recorded an outflow of $438 million on Monday, while MicroStrategy's stock price fell by 4.4%.

This correction occurred after MicroStrategy's record purchase of $5.4 billion in Bitcoin last week. With the approach of US holidays and no immediate catalyst to drive prices higher, BTC's path to the symbolic level of $100k has stalled.

ETH implied volatility has sharply turned towards put options rather than call options, reflecting similar sentiment as the market catches its breath. Concerns about downside risk for BTC may intensify, especially with tonight's FOMC meeting minutes and Wednesday’s PCE data due to be released. However, in the long run this is not an excessive correction; Bitcoin has merely retreated back to levels seen at the beginning of last week. Since the election markets have become extremely overbought and leveraged so a trading pause was inevitable."