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

Key Points

1. Bitcoin’s 90-day SOPR has climbed to 1.018, nearing the historically critical 1.02 level that previously triggered 10–20% pullbacks.

2. NVT and NVM ratios have declined by 11.21% and 16.21% respectively, indicating weakening valuation against transactional growth despite bullish narratives.

3. Bitcoin’s Open Interest-Weighted Funding Rate has turned increasingly positive, suggesting rising leverage that could lead to volatile shakeouts if combined with a rising SOPR.

4. Exchange Netflows remained negative with a 2.35% drop, showing consistent outflows of over 31K BTC, which challenges bearish SOPR implications and suggests deeper accumulation.

5. If Bitcoin’s SOPR breaches 1.02 and exchange inflows rise, it could trigger heavy profit-taking and sharp corrections, though controlled leverage and bullish momentum might flip sentiment quickly.