Bitcoin Bounces Back to $113,900 After Testing Weekly Lows

Bitcoin (BTC) made an impressive recovery to $113,900 on Wednesday after dipping below Monday’s low of $111,500 and briefly reaching the $111,000 mark on Binance during the Asian trading session. This bounce represents an early attempt at a mid-week recovery, bolstered by emerging bullish signals on the charts.

Key Drivers of Bitcoin’s Recovery

A significant factor contributing to this rebound is the bullish divergence between the relative strength index (RSI) and BTC’s price on both the one-hour and four-hour charts. A bullish divergence happens when the price sets lower lows while the RSI forms higher lows, often signaling a decline in bearish momentum and the potential for a reversal.

This recovery coincided with Bitcoin retesting its daily order block, creating a technical foundation for a possible surge toward $115,000. However, stronger confirmation is necessary.

A four-hour candle closing above $113,400 would indicate a definitive shift from a bearish to a bullish structure. Additionally, reclaiming the 200-period exponential moving average (EMA) on the four-hour chart would bolster positive momentum.

Crypto traders have shown mixed reactions to this price movement. MN Capital founder Michaël van de Poppe remarked on the strength of the recovery, stating,

On the other hand, crypto trader Crypto Chase warned that Bitcoin must reclaim the $113,400 to $114,000 range convincingly; otherwise, recent gains could reverse, causing BTC to drop back toward $107,000.

The 2.7% decrease in holdings highlighted persistent selling pressure from large investors, which is generally viewed as a hindrance to price recovery.

Despite this, other market indicators suggest the overall environment remains notably calm rather than decisively bearish. XWIN Research highlighted that Bitcoin’s implied volatility has plummeted to its lowest levels since October 2023, a period that led to a remarkable 325% rally from $29,000 to $124,000 for BTC.

This analysis painted the current scenario as a potential “quiet before the storm,” where low volatility and subdued trader positioning may build momentum for a significant move.

Supported by this view, CryptoQuant data revealed that exchange reserves are at multi-year lows, resulting in fewer coins available for sale. At the same time, Bitcoin’s Market Value to Realized Value (MVRV) ratio is near the neutral zone, suggesting limited pressure for either panic selling or aggressive profit-taking.

Together, these factors illustrate a market caught between whale-driven distribution and a structural landscape of tightening supply.

This article does not provide investment advice or recommendations. Every investment and trading move carries risks, and readers should conduct their own research before making decisions.