Bitcoin bounced to $113,900 after testing weekly lows, aided by bullish divergences. The rally followed a drop below Monday’s low of $111,500, with a brief test of $111,000 during the Asia trading session. A key factor for this rebound is the bullish divergence between the RSI and BTC price, signaling a potential trend reversal. However, stronger confirmation is necessary, with a close above $113,400 indicating a bullish structure. While the market experienced recovery, whale entities holding significant amounts of Bitcoin sold off approximately 147,000 BTC since August, illustrating ongoing selling pressure. Despite this, Bitcoin's implied volatility is at multi-year lows, hinting at potential for a significant move ahead. Trade positioning is unusually quiet, suggesting a buildup of momentum for either a bullish or bearish move as the market grapples with the effects of whale distribution against tightening supply conditions.

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