A pullback in the price of Bitcoin (BTC) is likely, based on several on-chain data points, namely the Spent Output Profit Ratio (SOPR) indicator, stablecoin inflows, stacked sell orders at $19,000, and the Crypto and Fear Index. However, the question remains when that correction would occur.
Profit-taking pullback possible with lower buy pressure
The SOPR indicator essentially gauges how profitable Bitcoin holders are at the moment. When the SOPR is high, BTC is at risk of a profit-taking pullback since traders tend to sell when they are in profit.
Adjusted Bitcoin SOPR. Source: Glassnode
Meanwhile, stablecoin inflows show how many stablecoins, such as USDT Tether, are flowing into exchanges. When stablecoin inflows increase, this typically means buyer demand is rising. On the other hand, selling pressure tends to rise when BTC reserves outpace the inflow of stablecoins.
In the past several days, the SOPR indicator has reached a level that previously led the price of Bitcoin to correct such as