Bitcoin traders alert! – Why this indicator says BTC could fall 20%

Bitcoin’s SOPR has climbed to 1.018, approaching the critical threshold of 1.02. Historical data shows that prices can drop 10-20% following such rises. Traders remain cautious, noting the current mix of leverage accumulation and stable exchange outflows.

Negative netflows suggest investors prefer self-custody despite the rising SOPR, which typically indicates profit-taking. With the open interest-weighted funding rate showing bullish sentiment, there exists a risk of liquidation if price drops, making market movements unpredictable.

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