Bitcoin bounced back to $113,900 after testing lows of $111,500, supported by bullish divergences in the relative strength index (RSI). This bullish signal, which indicates potential trend reversal, coincides with Bitcoin retesting its daily order block. For bullish momentum to be confirmed, a four-hour candle close above $113,400 is needed. However, broader trends reveal that whale entities have sold 147,000 BTC, indicating ongoing supply pressure. Despite this, Bitcoin's implied volatility has dropped to multi-year lows, suggesting a potential explosive move could be on the horizon. Current market conditions show a possible tightening supply, with exchange reserves at multi-year lows. The Market Value to Realized Value (MVRV) ratio is near neutral, implying limited pressure for both panic-selling and aggressive profit-taking. The market appears to be in a state of anticipation between whale-driven distribution and diminishing supply, highlighting a complex outlook for Bitcoin.

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