Bitcoin Shows Resilience Above $112,000
Bitcoin has managed to climb back above $112,000 after a week of significant market volatility. The cryptocurrency reached $112,293 in early Monday trading, marking its first return to this level since last Thursday’s sharp decline. As of now, it’s holding around $111,835, which suggests some stability returning to the market.
This recovery comes after what many traders described as an exhausting period. The past week saw Bitcoin struggling to maintain momentum, with analysts pointing to signs of investor fatigue. The sudden drops last week triggered two major liquidation events across the cryptocurrency space, wiping out billions in long positions.
Analyst Maintains Bull Market Outlook
Despite the recent turbulence, crypto investment firm XWIN Research Japan argues that Bitcoin’s bull market remains intact. In a recent analysis, they pointed to on-chain data that continues to support the bullish case. They noted that while recent volatility has unsettled traders, the underlying metrics tell a different story.
The firm specifically highlighted Bitcoin’s Market Value to Realized Value (MVRV) ratio, which has dropped to 2. This means the average cost basis for holders is about half of Bitcoin’s current price. Historically, this level reflects neither panic nor euphoria—it’s more of a middle ground where investors are sitting on healthy gains but the market has cooled from overheated conditions.
Long-term holder behavior also supports this view. Profit-taking by these investors has decreased, which effectively reduces the available supply in the market. This supply reduction could help offset short-term volatility and create conditions for renewed demand to push prices higher.
Market Impact and Sentiment Recovery
The recent recovery comes after a painful period for crypto bulls. Over the past seven days, more than $4 billion in long positions were liquidated across two major events. The first occurred on September 22, wiping out nearly $3 billion as Bitcoin fell 3% below $112,000. Then on Thursday, another $1 billion in longs were liquidated when Bitcoin dropped to $109,000.
Bitcoin positions accounted for most of the September 22 liquidations at $726 million, while Ethereum long bets led the Thursday wipeout with $413 million erased.
Market sentiment appears to be recovering alongside the price action. The Crypto Fear & Greed Index has risen to a “Neutral” reading of 50 out of 100, up 13 points from Sunday. This marks the first time the index has returned to neutral since September 19, recovering from a period of “Fear” that saw it drop to 28 last Friday—its lowest level since mid-April when Bitcoin was trading around $80,000.
Looking ahead, some analysts believe this consolidation phase could set the stage for Bitcoin’s next major upward move. The current MVRV range has historically preceded Bitcoin’s strongest expansion phases in past cycles. While the path forward might include further corrections, the underlying data suggests the bull market foundation remains solid.