According to Wu, QCP Capital said that ETH implied volatility has shifted sharply toward put options rather than call options. As the market takes a breather, BTC sentiment is similar, and concerns about downside risks may intensify.
Especially with the FOMC minutes tonight and PCE data on Wednesday coming out. However, in the long run, this is not an overdone pullback. Bitcoin is simply retracing back to where it was at the beginning of last week. The market has become extremely overbought and overleveraged since the election, so a pause was inevitable.
