A prominent Bitcoin analyst recently emphasized that the cryptocurrency continues to thrive in a bull market as it made a notable recovery, reaching over $112,000 on Monday. This upward movement comes after a week marked by significant fluctuations and investor anxiety.
Bitcoin (BTC) has faced challenges in recent trading sessions, with analysts pointing to signs of investor fatigue. Following a sharp decline last Thursday, the cryptocurrency experienced two substantial liquidation events that impacted the broader crypto market. On Monday, Bitcoin peaked at $112,293 in early trading, marking its first breach of the $112,000 threshold since the notable drop a week earlier. As of the latest updates from CoinGecko, Bitcoin’s price stood at $111,835.
According to research from XWIN Research Japan, found in a recent CryptoQuant note, the prevailing situation among traders may appear unsettling, but important on-chain metrics indicate that the Bitcoin bull market is far from over. The firm highlighted that behaviors observed among long-term holders and the current Market Value to Realized Value (MVRV) ratio show a degree of resilience in the market.
XWIN elaborated, stating, “Recent pullbacks in Bitcoin’s price look more like phases of digestion rather than indicators of a rally’s end.” At present, Bitcoin’s MVRV ratio sits at 2, which reveals the average cost basis of long-term holders is about half of Bitcoin’s current price. XWIN noted that this level historically does not indicate panic or exuberance in the market.
Despite ongoing market recalibrations, investors continue to register healthy gains, leading to a cooling of previously overheated conditions. Historical trends suggest that Bitcoin often enters a substantial growth phase after consolidating in similar MVRV ranges. XWIN also pointed out a decrease in profit-taking among long-term investors, which contributes to reducing available supply—a dynamic that can counterbalance short-term volatility and create favorable conditions for renewed price increases.
The current resurgence in Bitcoin’s price occurs against the backdrop of considerable losses in long positions recently. Over the past week alone, more than $4 billion in long trades were liquidated after Bitcoin’s significant price drops. The first major liquidation incident on September 22 resulted in nearly $3 billion in long positions vanishing, as Bitcoin slipped below $112,000, dragging the crypto market down with it, according to CoinGlass data.
Further losses were observed on Thursday, where another $1 billion in long positions were liquidated, further contributing to the market’s instability as Bitcoin dipped to around $109,000. During the September 22 liquidation event, Bitcoin accounted for the vast majority of losses, with approximately $726 million in long positions being erased. Conversely, on Thursday, Ethereum (ETH) long positions experienced significant losses, totaling $413 million.
In conjunction with Bitcoin’s price recovery, the Crypto Fear & Greed Index has also begun showing signs of optimism, shifting to a “Neutral” sentiment for the first time since September 19. On Monday, the index recorded a score of 50 out of 100, marking a recovery of 13 points from the previous day and indicating a shift away from the “Fear” level that had persisted earlier.
Overall, while the market has experienced turbulence, key metrics suggest that Bitcoin’s bull market remains very much alive, potentially setting the stage for future price increases.
