Today, Bitcoin price touched a new local high of $118,393, which is at the top of a key Fibonacci range. However, several signs indicate a possible correction.
SOPR Signals Profit-Taking
The first warning sign is the Spent Output Profit Ratio (SOPR), which tracks whether Bitcoin holders are selling their coins at a profit or loss.
When the SOPR is above 1, it means sellers are mostly locking in profits. Right now, SOPR is spiking, signaling that wallets that bought BTC earlier are now selling at higher prices.
Historically, when SOPR rises quickly, it often marks a local top, not because the trend has ended, but because the market starts cooling off after traders take profits.
Bybit Liquidations
The second sign is more aggressive: a massive $200 million liquidation of short positions on Bybit, all within five minutes.
These forced closures happen when too many traders bet that BTC will fall, but instead, the price rises fast, triggering a 'short squeeze'. While such squeezes can launch the Bitcoin price even higher temporarily, they often end in exhaustion. In this case, BTC price surged to $118,393, but the momentum stalled right at that resistance and started to pull back.
Weak Fibonacci Support
Looking at the chart, Fibonacci levels from $98,656 to $118,393 show that BTC just hit the upper resistance. The problem? Below this level, there are no strong support zones.
Specifically, between $113,735 and $108,524, there’s very little past trading activity. This means that if Bitcoin price starts to drop, it could fall quickly, with large red candles and little resistance to slow it down. In trading, this is often called 'thin air': price zones where buyers haven’t historically stepped in. It doesn’t guarantee a fall, but it means the downside risk is steeper if momentum reverses.
The Bitcoin price is still in an uptrend, but right now, several signs are flashing caution. SOPR shows increased profit-taking. The Bybit liquidation indicates that short positioning is still high. And the Fibonacci levels show weak support just below current levels. If BTC fails to hold $113,735, a drop to $108,524 could happen quickly.
