Bitcoin bounced back sharply on Wednesday, climbing to $113,900 after dipping as low as $111,000 during the Asian trading session.
The rebound followed Monday’s drop to $111,500 and suggested that buyers were attempting to regain control mid-week.
Charts pointed to emerging bullish signals that could support a broader recovery if key levels hold.
Technical Indicators Support Reversal Narrative
One of the primary drivers of Bitcoin’s rebound was a bullish divergence between the relative strength index (RSI) and price action on the one-hour and four-hour charts.
This pattern, where price sets lower lows while the RSI forms higher lows, typically signals weakening bearish pressure and potential for a reversal.
In addition, Bitcoin retested its daily order block, providing a possible technical base for further gains toward the $115,000 region.
For confirmation, analysts noted the importance of a four-hour candle close above $113,400.
Reclaiming the 200-period exponential moving average (EMA) on the four-hour chart would also strengthen the bullish outlook.
Traders Split on Near-Term Direction
Market commentators expressed differing views on Bitcoin’s next move.
Michaël van de Poppe, founder of MN Capital, described the rebound as promising.
“Good sweep of the lows for Bitcoin and it holds up. Breaking the 4H 20 EMA would be great for upwards momentum. Strong bounce,” he wrote.
Others were more cautious.
Crypto Chase emphasized that BTC must firmly reclaim the $113,400–$114,000 range to maintain bullish momentum.
Failure to do so, he warned, could see prices slide back toward $107,000.
Whale Selling Adds Pressure
Despite the short-term recovery, onchain data suggested mixed signals.
Large holders with 1,000 BTC or more have sold around 147,000 BTC since Bitcoin’s all-time high above $124,500 in August.
This $16.5 billion sell-off represented a 2.7% decline in whale balances and indicated persistent selling pressure from major investors.
Such distribution from whales has historically acted as a headwind for sustainable price recoveries.
Market Quietness Signals Possible Bigger Move
At the same time, volatility indicators pointed to an unusually calm backdrop.
Research from XWIN highlighted that Bitcoin’s implied volatility had fallen to its lowest level since October 2023.
That period of low volatility preceded a major rally that lifted Bitcoin from $29,000 to $124,000.
Analysts suggested the current environment could similarly represent a “quiet before the storm.”
Supporting this case, exchange reserves remain at multi-year lows, leaving fewer coins available for selling pressure.
Additionally, Bitcoin’s Market Value to Realized Value (MVRV) ratio hovers near neutral, signaling limited incentive for either panic selling or aggressive profit-taking.
Taken together, the market appears balanced between whale distribution and a tightening supply structure.
If momentum builds, the setup could fuel Bitcoin’s next decisive move.