Top bitcoin has recently shown signs of losing steam as it tests the psychological barrier near $100,000, prompting growing speculation about an imminent correction. Many traders and analysts suggest that the market may be preparing for a larger downturn, especially as BTC’s price action starts to reflect exhaustion at higher levels. After an explosive run that saw prices climb past $110,000 in May 2025, momentum has tapered, and on-chain metrics now indicate a potential return to lower support zones. At the heart of this forecast lies a growing focus on the significant liquidity pools just below the six-figure mark.
This change in sentiment is not driven by a single factor but by the convergence of several key market indicators. Elevated funding rates, rising open interest in BTC futures, and signals of weakening spot demand all contribute to the belief that a flush below $100K may be required to reset the market. Analysts argue that the current uptrend, while supported by strong macroeconomic tailwinds such as ETF inflows and institutional adoption, has become increasingly fragile in the face of mounting leverage and trader euphoria.
Liquidity Risks Below $100K
The idea that Bitcoin correction near $100K could drop below $100,000, despite having a bullish long-term story, hinges on the concept of liquidity. In markets, price changes are often driven by the amount of liquidity available in specific price ranges. These locations are generally where a lot of stop-losses. Liquidation levels. Or pending limit orders are grouped. As Bitcoin approaches $100,000, researchers have found that a significant amount of liquidity is accumulating between $96,000 and $99,000.
Individuals who trade on the market and have a substantial amount of capital, including institutional trading desks and algorithmic market makers, are aware of these zones and may intentionally lower prices to attract more liquidity. When there is excessive leverage, even a minor change can trigger a chain reaction of liquidations, causing prices to plummet rapidly. According to CryptoQuant and Glassnode. Leverage ratios are still high. This means that the probability of a severe correction remains significant as long as speculative activity is the primary driver of the market.
Bitcoin’s Cyclical Corrections and Signals
There have been several instances in Bitcoin correction near $100K history when prices surged rapidly and then plummeted just as quickly. BTC experienced several drops of more than 30% during the 2020–2021 cycle before continuing to rise to new highs. In 2013 and 2017. While the market was growing, prices fell sharply for a brief period and then rose again weeks or months later. These cycles suggest that Bitcoin’s long-term trend may be upward, but it is normal and essential for the cryptocurrency to experience fluctuations.
The technical indicators we observe now are similar to those we saw before prior corrections. The weekly chart’s Relative Strength Index (RSI) is still in the overbought zone. The Net Unrealised Profit/Loss (NUPL) and the Spent Output Profit Ratio (SOPR) also indicate that investors have substantial unrealised profits, which makes them more likely to take profits. These things usually happen before the market as a whole drops, especially when retail traders start to feel more positive.
Institutional Inflows and ETF Risks
The recent rise in Bitcoin’s price is primarily due to the influx of institutional money through spot Bitcoin exchange-traded funds (ETFs). BlackRock, Fidelity, and Grayscale are among the largest financial companies to have generated billions of dollars in net inflows. This makes ETFs a significant new source of demand. However, this involvement by institutions has both positive and negative aspects. It helps drive prices higher, but it also introduces systemic risk because ETF holdings are concentrated.
If macroeconomic conditions change, such as the Federal Reserve adjusting its interest rate policy or new geopolitical tensions emerging, institutions may become less interested in Bitcoin correction near $ 100K. This type of change could cause money to leave ETFs, leading to a rapid selloff. Even though ETF designs are meant to be stable, large redemptions can indirectly push spot prices down, especially when the market is already overheated.
Miner Sell-Offs Signal Cooling
Miner behaviour is another new trend that is helping to make correction projections. Following the recent Bitcoin correction near $100K halving in May 2024, mining has become less profitable, prompting several mining companies to sell off some of their holdings. A miner selling alone doesn’t usually cause markets to crash, but it does add to the overall selling pressure, especially when whales and long-term investors also start to sell their coins.
According to Glassnode’s data, the supply of long-term holders is decreasing, while the amount of money entering exchanges is increasing. This suggests that some investors want to take profits near local highs. At the same time, Bitcoin correction near $100K hash rate remains strong, indicating that the network is secure. However, the rise in network difficulty shows that miners are still facing cost pressures. All of these tendencies make it more likely that the market will need to cool off shortly.
Greed and Hype Precede Corrections
The Crypto Fear & Greed Index and other sentiment indicators suggest that people are currently quite greedy, which is a sign that local tops are likely to occur. As the media coverage grows and regular traders rush into the market out of fear of missing out. Contrarian investors often begin to reduce their investments. This difference between what the public thinks and what experienced traders are doing adds to the case for a possible short-term correction.
The social media buzz around BTC on sites like X (formerly Twitter). Reddit. And YouTube also appears to have reached its peak. Indicating that volatility is imminent. With influencer-driven euphoria prevalent throughout the market and leverage at an all-time high. Even minor price drops can occur rapidly due to the cascading effects of stop-loss triggers.
Final thoughts
Even when there are warning signs, it’s essential to distinguish between a bearish phase and a genuine correction. In many respects. A return to the $ 90,000–$ 95,000 range may mark the start of a longer-lasting rally. Corrections help the markets eliminate weak hands. Reduce leverage. And prepare for new highs. Long-term investors typically view these periods as opportunities to buy. Rather than signs of systemic weakness.
As Bitcoin becomes more stable and integrated into the world’s financial systems. Its price may become less volatile. Investors should remain prepared for significant fluctuations in both directions and avoid becoming too complacent at historically considerable resistance levels. Traders can make informed choices in a rapidly changing market by staying up to date with credible sources, such as CoinDesk, The Block, and on-chain analytics providers.
