Bitcoin Bull Market ‘Still Alive’ as Price Recovers Above $112K

Bitcoin briefly surged past $112,000 on Monday after a week of extreme volatility, with analysts suggesting the leading cryptocurrency is still firmly in a long-term uptrend.

Bitcoin Recovers After Volatile Week

After several days of investor uncertainty, Bitcoin (BTC) rallied to a 24-hour high of $112,293, its strongest level since Thursday’s sharp correction. At the time of writing, Bitcoin was trading at $111,835, according to data from CoinGecko.

Last week’s turbulence triggered concerns about market exhaustion, as Bitcoin’s sudden drop sparked two major liquidation waves across the crypto market.

Analysts Say Bitcoin’s Bull Market Is “Not Over”

Despite the pullbacks, crypto investment firm XWIN Research Japan argued that Bitcoin remains in a bull cycle. In a note shared via CryptoQuant, the firm stated:

“While recent volatility has unsettled traders, on-chain data continues to suggest that Bitcoin’s bull market is not over.”

XWIN highlighted Bitcoin’s Market Value to Realized Value (MVRV) ratio, which has dropped to 2. This indicates that the average cost basis of holders is about half of Bitcoin’s market value—a sign of resilience rather than panic.

Bitcoin’s MVRV ratio (purple) compared to its price (black) since late 2024. Source: CryptoQuant

The firm added that past Bitcoin cycles have often entered their strongest expansion phase after consolidating in this range, pointing to long-term investor behavior and reduced profit-taking as bullish signals.

“Recent pullbacks appear less like the end of a rally and more like a period of digestion,” XWIN explained, suggesting the consolidation could lay the foundation for Bitcoin’s next major upward move.

$4 Billion in Crypto Longs Wiped Out

Bitcoin’s rebound follows a brutal week for crypto bulls. According to CoinGlass data, over $4 billion in long positions were liquidated in just seven days.

On Sept. 22, nearly $3 billion in longs were wiped out as Bitcoin briefly dipped below $112,000.
On Thursday, another $1 billion in positions were liquidated as Bitcoin fell to $109,000.

Bitcoin accounted for the largest share of the liquidations on Sept. 22 with $726 million lost, while Ethereum (ETH) long positions led Thursday’s wipeout with $413 million.

Crypto Sentiment Improves to Neutral

Despite the recent chaos, investor sentiment is showing signs of recovery. The Crypto Fear & Greed Index climbed to a “Neutral” reading of 50 on Monday, its highest level in over a week.

The index rose 13 points from Sunday’s reading, continuing an uptrend from Friday’s score of 28—its lowest since mid-April, when Bitcoin traded near $80,000.

This recovery in sentiment suggests traders are regaining confidence as Bitcoin stabilizes above $111K.