Bitcoin Faces Selling Pressure Near $113,600 as Price Bounces
Bitcoin (BTC) is facing potential resistance at the $113,600 level as it attempts to regain upward momentum.
- Current price rebounded to $112,800 from below $108,800.
- Price bounce attributed to a record high in the S&P 500 and strong Nvidia earnings.
- Investors holding BTC at a loss may sell during any price recovery.
- BTC trades below the cost basis of both 1-month ($115.6k) and 3-month ($113.6k) holders.
- Glassnode indicates that short-term holders are under pressure, complicating any relief rally.
Market Dynamics
- Spot market flows show neutral demand, while perpetuals indicate bearish sentiment.
- Current funding rate is approximately 0.01%, indicating fragile market conditions.
- A price breakout above $112.4K with volume could lead to targets of $114K - $116K.
- ETF inflows remain strong with $81 million for Bitcoin ETFs and $307 million for Ether ETFs recently.
- Entities are absorbing around 3,600 BTC daily, significantly exceeding miner issuance.
- Metaplanet plans to raise $881 million to acquire $837 million in BTC.
Support Levels
- Key support level is at $107,000 due to the six-month cost basis.
- A decline below this level may trigger further selling and increase downside risk.