Bitcoin (BTC) is attempting to rebound after dipping below $108,800 earlier this week. The price has climbed back to around $112,800, but on-chain data indicates that resistance near $113,600 could slow further gains.
Why Bitcoin May Struggle Around $113.6K
On-chain metrics from Glassnode reveal that investors who purchased BTC in the past three months paid, on average, $113,600. These short-term holders may look to sell at breakeven, creating selling pressure as the price approaches this level.
“Bitcoin trades beneath the cost basis of both the 1-month ($115.6K) and 3-month ($113.6K) cohorts, leaving these investors under stress. Any relief rally is likely to face resistance as short-term holders seek to exit at breakeven,” Glassnode noted.
This means that even as BTC attempts to rally, some investors may take profits or sell to avoid losses, making it harder for the bulls to maintain momentum.
Mixed Market Signals
While spot market demand is currently neutral, other factors could support BTC:
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ETF and corporate activity: Bitcoin ETFs and institutional purchases continue to absorb supply.
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ETF inflows: $81 million in Bitcoin ETFs and $307 million in Ether ETFs were added in the past day.
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Corporate accumulation: Companies like Metaplanet are raising large funds to buy BTC, with plans to acquire $837 million in Bitcoin by September–October.
Timothy Misir, head of research at BRN, explained:
“ETFs, corporates, and governments are now absorbing ~3,600 BTC/day, roughly four times miner issuance. This provides bullish support despite mixed spot market signals.”
Key Support Levels
If Bitcoin fails to maintain momentum, $107,000 is the crucial support level. Glassnode notes this corresponds to the six-month cost basis, meaning long-term investors may sell if BTC falls below it, potentially accelerating downside movement.
“A sustained move below $107K risks triggering fear, which could accelerate downside momentum,” Glassnode said.
What This Means for Traders
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Resistance near $113.6K may slow short-term rallies.
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Institutional and ETF demand is providing a buffer, supporting price stability.
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Key support at $107K is critical to watch for potential declines.
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Price action above $112.4K with strong volume could open a path to $114K–$116K.
Also Read: Bitplanet Launches South Korea First $40M Bitcoin Treasury
FAQs
1. Why is $113.6K a key resistance for Bitcoin?
This level represents the average purchase price of BTC for short-term investors over the past three months, who may sell at breakeven.
2. What is the six-month cost basis?
It’s around $107K, showing the average price paid by investors who bought BTC within the last six months, marking a key support level.
3. How are ETFs and corporate buyers affecting BTC?
ETFs and institutional buyers are absorbing large amounts of BTC, providing bullish support despite selling pressure from short-term holders.
4. Could Bitcoin break above $113.6K?
Yes, if volume picks up above $112.4K, it could push BTC toward $114K–$116K.
5. What happens if Bitcoin falls below $107K?
Falling below this level could trigger fear selling among long-term holders, accelerating a decline.