As bitcoin BTC bulls aim to reestablish an upward price trajectory, they may face resistance from sellers near the $113,600 level, according to on-chain data.
BTC has already rebounded to $112,800 from below $108,800 levels recorded earlier this week, as per CoinDesk data. This recovery seems to be driven by a fresh all-time high in the S&P 500 and a substantial earnings report from Nvidia, a prominent player in the AI sector.
The upcoming path seems steep, as investors holding at a loss might consider selling into any price rise.
“Currently, bitcoin is trading below the cost basis of both the 1-month ($115.6k) and 3-month ($113.6k) cohorts, putting pressure on investors. Any surge in price is likely to meet resistance as short-term holders look to break even,” analytics firm Glassnode noted in a report released Wednesday.
The cost basis metric from Glassnode indicates the average acquisition prices for digital assets based on varying holding durations. For instance, the three-month cost basis of $113,600 suggests that investors who bought in the last three months did so at this price on average.
Mixed Market Dynamics
Currently, the inflow trends indicate a challenging scenario for bulls, although ETF and corporate activities suggest a contrasting narrative.
“Spot demand remains neutral, with perpetuals leaning bearish. The current funding rate at ~0.01% indicates fragile neutrality. Should the price climb above $112.4K with sufficient volume, it may unlock the pathway to $114K - $116K,” Timothy Misir, head of research at BRN, pointed out.
However, ETF inflows and corporate adoption of Bitcoin are reportedly absorbing substantial market supply, hinting at potential upside.
“ETF contributions have increased significantly, totaling $81 million for Bitcoin ETFs and $307 million for Ether ETFs within the last day. ETFs, corporates, and governments are currently accumulating around 3,600 BTC per day, equating to approximately four times the miners’ output. Metaplanet has announced intentions to raise $881 million to purchase $837 million in BTC during September to October, further increasing its 18,991 BTC holdings,” he added.
Key Support Levels
If Bitcoin slips, the crucial support level to monitor is $107,000.
This is supported by Glassnode’s analysis, which indicates the six-month cost basis sitting around this figure. A drop below this threshold could trigger sales among current holders, leading to a sharper decline.
“The six-month cost basis is approximately ~$107k. A sustained dip below this could spur panic selling, thus increasing downward pressure,” Glassnode outlined.
