QCP: The market has become extremely overbought due to excessive leverage, so a correction is inevitable

BlockBeats News, November 26th, QCP released its daily viewpoint stating that Bitcoin has dropped below $93,000, with over $430 million in long positions liquidated. This drop coincided with the end of a five-day streak of net inflows into spot ETFs, recording a net outflow of $438 million on Monday, while MicroStrategy's stock price fell by 4.4%.

Prior to this, MicroStrategy made a record-breaking purchase of $5.4 billion worth of Bitcoin last week. With the U.S. holiday approaching and no immediate catalyst to drive prices higher, Bitcoin's path to the symbolic $100,000 mark has temporarily stalled.

Ethereum's implied volatility has heavily favored put options, reflecting a market sentiment similar to Bitcoin's, indicating a market adjustment. As the Fed meeting minutes tonight and Wednesday's Personal Consumption Expenditures (PCE) data approach, concerns about downside risks may intensify.

However, overall, this is not an excessive pullback. Bitcoin has only retraced to last week's levels. Since the election, the market has become extremely overbought due to excessive leverage, making a correction inevitable.