Bitcoin faces serious resistance at $113,700, breakdowns below $107K threaten to return to five digits

Bitcoin (BTC) trades in a volatile position of nearly $112,000, sandwiched between key technical levels that can determine the next major directional movement, following a pullback from an all-time high of $124,000 two weeks ago.

According to a GlassNode’s August 27 report, BTC is facing immediate resistance at $113,700, in line with the recent investors’ three-month cost base.

Potential sales pressure

An attempt to bounce could encounter sales pressure from short-term holders seeking break-even exits after being forced into unrealized losses. The monthly cost base is high at $115,600, creating an additional layer of resistance that can suppress recovery attempts.

For more information about the Bulls, the critical support level is $107,000, representing a six-month cost-based threshold. As of press time, Bitcoin price is $112,206.57.

Persistent failures below this zone risk terrorism among new market participants and could accelerate downward momentum towards the $95,000-$93,000 region where historical analysis suggests potential base formation.

The cost-based distribution heatmap reveals thick supply clusters ranging from $93,000 to $110,000, which have been formed since December 2024. This accumulation zone offers resilience of over $110,000, but also represents the logical target area where sales pressure strengths are sold.

In the 4-year band statistical analysis, previous bearish drawdowns usually find low values ​​around one standard deviation on a short-term holder’s cost basis, supporting a $95,100 forecast.

Investors show indecisiveness

The current market structure shows that Bitcoin is experiencing a drawdown of 11.4% from its peak.

The relative unrealized losses are only 0.5%, which is usually well below the 30% level associated with the deep bear stage. This metric suggests that the broader market has not yet experienced any serious stress.

However, emotional indicators refer to the attachment of pressure. The used output profit margin is 1.0, and it is close to neutral, indicating that investors have not achieved significant profits or losses.

The permanent futures market has clearly weakened since July, with the Cumulative Volume Delta showing sustained selling pressure across major exchanges such as Binance and Bibit.

Spot market sentiment shifted from the strong buying pressure observed in April, with rebounds being driven from $72,000. Funding rates remained close to 0.01% across exchanges, indicating a vulnerable equilibrium in which even modest selling pressures can weaken emotions.

Bitcoin technology setup shows binary results. The rescue rally faces formidable resistance at $113,700, but losing support of $107,000 opens the door to a reduction in acceleration targeting the $95,000-$93,000 zones awaiting a large supply cluster.

It is mentioned in this article