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Bitcoin Faces Correction Risk as On-Chain Metrics Signal Profit-Taking

Bitcoin may be approaching a price correction as key on-chain indicators show long-term holders locking in profits and whales increasing exchange deposits. Elevated metrics historically associated with market pullbacks suggest potential downward pressure, with critical support levels emerging near $116,500.

The Long-Term Holder Spent Output Profit Ratio (SOPR) has reached 1.96, its highest level in recent history. This indicates that investors holding Bitcoin for over 155 days are realizing near 100% profits on their positions—behavior that often precedes market corrections.

Simultaneously, the Whale-to-Exchange Ratio suggests large holders may be preparing to liquidate portions of their holdings. This metric tracks whale-sized transactions headed toward exchanges, which typically signals impending selling pressure when elevated.

Bitcoin is currently consolidating around $117,500, with technical support forming at $116,456. Should this level fail to hold, analysts identify $103,300 as the next critical price floor. Historical patterns show similar spikes in the SOPR and whale ratios aligned with notable price declines of 10-15%.

Traders are advised to monitor these on-chain metrics closely alongside price action for early signals of market direction shifts. The combination of record-high profit-taking by long-term investors and increased whale activity toward exchanges creates significant headwinds for Bitcoin’s near-term price stability.

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