Bitcoin price touched a fresh local high near $118,393, earlier today. It is a level that sits right at the top of a key Fibonacci band.
But while bulls are celebrating another breakout, several indicators, both on-chain and chart-based, are quietly warning that this might not last.
The BTC price is showing signs of short-term weakness, and a correction could follow if momentum fades.
SOPR Flashes Early Profit-Taking
The first red flag is the Spent Output Profit Ratio (SOPR). This metric tracks whether Bitcoin holders are selling their coins at a profit or a loss.
When the SOPR is above 1, it means sellers are mostly locking in profits. Right now, SOPR is spiking. That means 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.
In May, a similar SOPR jump came just before the Bitcoin price dropped by several thousand dollars.
It doesn’t mean a crash is guaranteed, but it does signal that fewer people are holding with conviction in the short term.
Bybit Liquidation Confirms Fragile Short Bias
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. That’s a classic liquidation wick: a short-term spike followed by hesitation.
James Wynn’s 40x Short Highlights Sentiment Risk
Adding to this mix, well-known trader James Wynn opened a 40x short on BTC near $111K. High-leverage shorts are risky, and while Wynn’s trade may already be liquidated, it reflects a broader mindset that traders still expect Bitcoin to correct, despite repeated ATH pushes.
When the market leans heavily short, rallies can be sharp, but they’re also fragile. A rally driven by short liquidations rather than organic demand often lacks staying power.
Plus, there have been selloff vibes in the air, courtesy of Bhutan and their BTC.
Fibonacci Chart Shows Weak Support For Bitcoin Price
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 shows 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. For now, traders should keep an eye on these levels and be ready for the next wave of liquidations.
