BTC Bounce Meets Selling Wall at 113.6K

[umair]

Hey everyone,

Bitcoin has staged a recovery from the sub-$108.8K zone, getting a boost from new S&P 500 highs and stronger-than-expected Nvidia earnings. This rally has sent BTC up into the low $112Ks—but it's now bumping into a sell wall near $113.6K, according to on-chain data.

Here’s what's going on: analysts using data from Glassnode have flagged that Bitcoin is still trading below the average cost basis of investors who bought in the past one and three months—$115.6K and $113.6K, respectively. That means short-term holders are likely under pressure, potentially selling at breakeven once the price nears those levels. This could act as a significant barrier to continued upside momentum.

Meanwhile, market flows are mixed. Spot demand remains neutral, while perpetual futures markets lean bearish—with a funding rate around 0.01%, indicating fragile neutrality. On the bullish side, ETF inflows and corporate buying are steadily absorbing supply, giving hope that demand could hold strong despite selling pressure.

Support, however, is not far away. Glassnode data points to the $107K–$108.9K region as crucial—this roughly matches the six-month cost basis. If BTC falls through that zone, it could trigger fear-led selling and accelerate downside risk.

Bottom line: Bitcoin's near-term path is facing resistance at $113.6K as stressed short-term holders look to exit. If bulls can push above that level with volume, the next targets could emerge. If not, we could see a test of the $107K zone—and beyond if sentiment breaks further.

What do you think—are bulls strong enough to break through, or will stress-selling dominate this bounce?