A Bitcoin analyst has asserted that Bitcoin remains in a bull market, having briefly recovered to over $112,000 on Monday after a week marked by significant volatility.
Over the past week, Bitcoin (BTC) has faced challenges in gaining traction, as analysts noted signs of investor exhaustion. A sharp decline last week triggered two major liquidation events across the broader crypto market.
On Monday, Bitcoin reached a 24-hour high of $112,293 in early trading, exceeding $112,000 for the first time since its steep drop on Thursday. It’s currently trading at $111,835, according to CoinGecko.
Bull market “not over” for Bitcoin
However, crypto investment firm XWIN Research Japan stated in a CryptoQuant note on Sunday that “despite recent volatility unsettling traders, on-chain data indicates that Bitcoin’s bull market is still intact.”
The firm emphasized that the behavior of long-term holders and Bitcoin’s Market Value to Realized Value (MVRV) ratio—comparing its market value to the average cost basis of holders—indicates “resilience beneath the surface.”
XWIN added, “The recent pullbacks in Bitcoin seem less like the end of a rally and more like a digestive phase.”
The MVRV ratio for Bitcoin has fallen to 2, with the average cost basis approximately half of Bitcoin’s current price, which XWIN noted has historically “shown neither panic nor euphoria.”
“Investors still possess healthy gains, yet the market temperature has cooled from overheated conditions,” the report continued, suggesting that previous cycles have seen Bitcoin enter “its strongest expansion phase” following consolidations within this MVRV range.
In addition, the reduction in profit-taking by long-term investors has effectively decreased available supply, countering short-term volatility and setting the stage for renewed demand to potentially elevate prices.
XWIN concluded that these two metrics demonstrate “this cycle has not reached its terminal phase,” and suggested that the recent consolidation “could set the groundwork for the next major upward movement—indicating that the bull market is very much alive.”
Crypto longs decimated by Bitcoin’s fall
Bitcoin’s rebound follows the liquidation of over $4 billion from crypto bulls during two significant liquidations over the past week.
The first major liquidation on Monday, Sept. 22, saw nearly $3 billion in long positions across the crypto market wiped out as Bitcoin dipped 3% below $112,000, dragging the rest of the market down, according to CoinGlass data.
Following this, a further $1 billion was liquidated in total crypto longs on Thursday, again driven by Bitcoin’s drop to $109,000.
Related: Expect major BTC corrections before new all-time highs: Analyst
On Sept. 22, Bitcoin accounted for the majority of the liquidations, with $726 million in long positions eliminated, while Ether (ETH) longs led the liquidation on Thursday, with $413 million lost.
Crypto sentiment rises to “Neutral”
Meanwhile, the sentiment measured by the Crypto Fear & Greed Index has improved to “Neutral” for the first time since Friday, Sept. 19, bouncing back from a period of “Fear.”
The index scored 50 out of 100 on Monday, a rise of 13 points from Sunday.
This increase continues the upward trend since the index fell to 28 on Friday, its lowest reading since mid-April when Bitcoin dropped to $80,000.
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