Bitcoin’s Rally Faces Critical Test: On-Chain Data Reveals Massive Selling Pressure at $113.6K

Bitcoin's surge hits a wall of resistance as blockchain analytics flash warning signs at the $113.6K threshold.

The Selling Pressure Mounts

On-chain metrics indicate substantial sell orders clustering around the $113.6K price level—creating a formidable barrier for Bitcoin's upward momentum. Whales and institutional holders appear to be taking profits at these heights, triggering increased volatility across exchanges.

Market Mechanics Exposed

Transaction volumes spike as long-term holders cash out, while derivatives markets show heightened hedging activity. The data suggests traders are bracing for potential pullbacks despite the overall bullish sentiment—because nothing says 'confidence' like dumping your position at the first sign of six figures.

This classic profit-taking behavior reveals the market's underlying fragility even during rallies—reminding everyone that in crypto, everyone's a diamond-handed holder until the price hits their target exit.

Mixed flows

As of now, the spot market flows suggest an uphill battle for the bulls ahead, while ETF and corporate activity suggest otherwise.

"Spot demand remains neutral, as perpetuals tilt bearish with CVD negative. The current funding rate of ~0.01% points to a fragile neutrality. If price breaks above $112.4K with volume, it opens the pathway to $114K – $116K," Timothy Misir, head of research, BRN.

That said, ETF inflows and corporate adoption of BTC continues to suck out significant supply from the market, offering a bullish hope, Misir explained.

"ETF flows continue to strengthen with $81 million for Bitcoin ETFs and $307 million for Ether ETFs over the past day. ETFs, corporates, and governments are now absorbing ~3,600 BTC/day, which translates to ~4x miner issuance. Metaplanet announced a new plan to raise $881 million to buy $837 million BTC in Sep–Oct, adding to its 18,991 BTC," he noted.

Gauging key support

Should BTC turn lower, then $107,000 is the key support level to watch.

That's because analysis by Glassnode shows that the six-month cost basis is at that level. So, a break lower WOULD prompt these holdings to sell, potentially causing a more profound decline.

"The 6-month cost basis sits NEAR ~$107k. A sustained move below this level risks triggering fear, which could accelerate downside momentum," Glassnode said.