A pullback in the price of Bitcoin (BTC) is likely, based on several on-chain information points, namely the Spent Output Profit Ratio (SOPR) indicator, stablecoin inflows, stacked sell orders at $19,000, and the Crypto and Fright Alphabetize. Nevertheless, the question remains when that correction would occur.

Turn a profit-taking pullback possible with lower purchase pressure

The  SOPR indicator substantially gauges how assisting Bitcoin holders are at the moment. When the SOPR is high, BTC is at chance 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 heir-apparent demand is rising. On the other paw, selling pressure tends to ascent when BTC reserves outpace the inflow of stablecoins.

In the by several days, the SOPR indicator has reached a level that previously led the toll of Bitcoin to correct such as in tardily 2018 and summertime 2019.

On November. 20, Rafael Schultz-Kraft, the master technical officer at Glassnode, noted:

"Adjusted SOPR (hourly, 7d MA) as high as information technology hasn't been since July 2019. Correction incoming?"

This trend can get apropos if the momentum of Bitcoin slows. Renato Shirakashi, the creator of the SOPR indicator, said Nobel prize laureate Daniel Kahneman's work shows investors are comfortable selling when in profit.

Hence, if Bitcoin gets stagnant or consolidates in the near term beneath the $19,000 resistance, a minor pullback could emerge. Shirakashi wrote:

"People, in general, are much more comfortable selling when they are in profit. In a bull market, when SOPR falls below ane, people would sell at a loss, and thus be reluctant to do so. This pushes the supply down significantly, which in plough puts an upward pressure on the price, which increases."

The rise in the Commutation Stablecoins Ratio from CryptoQuant coincides with the rising SOPR. The Stablecoins Ratio is the Bitcoin exchange reserves divided past stablecoin reserves. When it increases, it shows that potential selling pressure is rising.

Stablecoins Ratio for BTC. Source: CryptoQuant

Every bit such, CryptoQuant CEO, Ki Young Ju, expects a short-term, albeit not a big correction, in the short term. He noted:

"BTC potential selling pressure is going upwardly, but still depression. We'll see some correction in a few days but it won't exist big. Long-term bullish."

$xix,000 stands in the style of a new all-time high

Exchange order books also testify that the $19,000 level has become an important resistance surface area. There are significant sell orders beyond Bitfinex, Bitstamp, Binance, and Coinbase almost $nineteen,000, which might forestall the continuation of a rally.

Another possible factor that could trigger a short-term pullback is the Crypto Fear and Greed index. The alphabetize is still at dangerously high levels, which raises the probability of a correction.

The correction might come up later

However, over the past several months that exchanges' Bitcoin reserves have been in a continuous downtrend as Cointelegraph reported. This could offset a major market-wide correction, particularly if the BTC bull run accelerates triggering FOMO, which means a large influx of new buyers.

Year-to-date, Glassnode institute that the residue of Bitcoin on exchanges declined past eighteen%. The continuous drop in commutation reserves reduces the probability of deep pullbacks, which analysts, like Ki, have consistently emphasized in November.

Bitcoin residue on substitution xc-day moving average. Source: CryptoQuant

Moreover, in that location are other factors that could delay the correction until after Bitcoin breaks $xix,000 or potentially even $20,000.

CoinMetrics network information analyst Lucas Nuzzi constitute that the MVRV ratio, which tracks the realized cap of Bitcoin, is not nearly the level that marked previous tops.

The term realized cap refers to the Bitcoin market cap at the time investors bought BTC. If the realized cap is high, it means many investors bought BTC at a higher cost.

Hence, there is a strong argument for a delayed pullback, potentially afterward the ongoing rally gets overextended. On Nov. twenty, Cole Garner, an on-chain analyst, wrote:

"Bitcoin commutation liquidity is melting down. Institutions aren't prepared for scarcity like this."