Bitcoin Tests $113,500 Resistance as Market-Bottom Signals Strengthen

Bitcoin (BTC) shows signs of a market bottom in August 2025, trading at $108,730.47, down 6% from last week’s $115,172.93, per Coinbase. On-chain data hints at a potential rebound, but the $113,500 resistance level looms as a critical test for bulls, according to BeInCrypto’s August 31 analysis.

Short-term holder capitulation signals a possible bottom, with the Spent Output Profit Ratio (SOPR) dropping to 0.982 on August 29, its lowest in months, per Glassnode. This mirrors April’s 0.94 SOPR low, which preceded a 31.6% rally from $84,800 to $111,600. The UTXO Realized Price Distribution (URPD) reinforces $108,200 as a support zone, with 447,544 BTC (2.25%) last transacted there. Conversely, $113,200-$113,500 holds 210,708 BTC (1.06%), making it a key breakout threshold. A close below $107,300 could signal bearish continuation.

Technical indicators like RSI (37.76, neutral) and MACD (-493.51, bearish) suggest oversold conditions, hinting at a potential reversal if buyers step in, per CoinCodex. Institutional ETF inflows of $219 million weekly and MicroStrategy’s 576,230 BTC holdings bolster long-term optimism. However, $1.51 billion in ETF outflows and miner sell-offs add pressure, per CoinMarketCap.

Macro factors, including Federal Reserve rate cut expectations (73.5% probability) and a 0.90 BTC-S&P 500 correlation, could sway prices, per Caleb and Brown. Traders should watch $113,600 resistance and $112,000 support, using stop-losses to manage volatility. Long-term investors might see dips as buying opportunities, given Bitcoin’s $2.17 trillion market cap and halving-driven scarcity. Bitcoin’s path hinges on breaking $113,500 to target $120,000 or risking a drop to $105,300.