Bitcoin is recovering from its recent dip below $108,800, trading near $112,958 as a record-setting rally in the S&P 500 and strong Nvidia earnings lifted risk sentiment. Still, on-chain metrics suggest BTC faces headwinds at the $113,600 level, where sellers may look to exit.

Resistance Near $113.6K

Analytics firm Glassnode notes that bitcoin is currently trading below the cost basis of short-term holders. The average purchase price for the 1-month cohort sits at $115.6K, while the 3-month cohort averages $113.6K. These levels represent potential resistance zones, as investors who bought higher may sell once prices return to their breakeven.

“Any relief rally is likely to encounter resistance, as short-term holders seek to exit at breakeven,” Glassnode said in its Wednesday report.

Mixed Market Signals

Spot market flows remain neutral, with perpetual futures tilting bearish and cumulative volume delta (CVD) in the red. According to BRN’s Timothy Misir, funding rates around 0.01% reflect fragile sentiment.

• A push above $112.4K on strong volume could open the door to $114K–$116K, Misir added.

Meanwhile, institutional demand is building.

• ETF flows strengthened, with $81M into bitcoin ETFs and $307M into ether ETFs over the past day.
• Corporate buyers are also active: Metaplanet announced plans to raise $881M to acquire $837M worth of BTC in Sep–Oct, adding to its existing 18,991 BTC.

Altogether, ETFs, corporates, and governments are absorbing about 3,600 BTC/day — four times miner issuance, tightening supply.

Key Support at $107K

If bitcoin reverses lower, $107,000 is the critical support, aligning with the six-month cost basis. A sustained breakdown below that level could spark forced selling and accelerate downside momentum.

“The six-month cost basis sits near $107K. A move below risks triggering fear and deeper declines,” Glassnode warned.

Outlook

Bitcoin’s bounce mirrors optimism across equities but remains constrained by short-term selling pressure. Traders now watch whether inflows from ETFs and corporates can outweigh profit-taking near $113.6K, setting the stage for a sustained push higher.