Bitcoin Holds Above $112K as Analysts Insist Bull Market Remains Intact

Bitcoin steadied above $112,000 on Monday, easing concerns after a turbulent week that rattled crypto investors. The world’s largest cryptocurrency briefly touched $112,293 in early trading, its highest level since last Thursday’s sharp price pullback, before settling near $111,835.

Despite the recent swings, researchers at crypto investment firm XWIN Research Japan maintain that the broader bull market remains alive. In a Sunday note on CryptoQuant, XWIN argued that on-chain indicators show “resilience beneath the surface,” pointing to data from long-term holders and Bitcoin’s Market Value to Realized Value (MVRV) ratio.

Strength Behind Recent Bitcoin Volatility

The MVRV, which compares Bitcoin’s market price to the average purchase price of all coins, currently stands at about 2. XWIN highlighted that this level historically signals neither panic selling nor excessive optimism. 

“Investors are still sitting on healthy gains, yet the market has cooled from overheated conditions,” the report said, adding that previous cycles often entered their strongest expansion phases after similar periods of consolidation.

XWIN also noted that profit-taking by long-term holders has slowed, effectively tightening supply and potentially setting the stage for renewed upward pressure. “This cycle has not reached its terminal stage,” the firm wrote. 

“The recent consolidation could mark the groundwork for the next major leg upward—suggesting the bull market is alive and well.”

Market Shakeouts and Shifting Sentiment

Bitcoin’s latest rebound follows two significant liquidation events that erased more than $4 billion in leveraged positions over the past week. Data from CoinGlass show that on Monday, September 22, roughly $3 billion in crypto longs were wiped out when BTC briefly dropped 3% below $112,000. 

A second wave on Thursday triggered another $1 billion in liquidations as prices slid to $109,000. Bitcoin accounted for $726 million of the losses during the first event, while Ether led the second with $413 million in liquidated long positions.

Even with these sharp shakeouts, the crypto market mood is showing signs of recovery. The Crypto Fear & Greed Index climbed back to a neutral reading of 50 on Monday, up from 37 a day earlier.. That rebound follows a stretch of “Fear” not seen since mid-April, when BTC briefly sank toward $80,000.

For now, traders are watching whether Bitcoin can maintain its footing above $112,000, with analysts like XWIN suggesting that the recent turbulence may be a pause rather than an end to the current bull cycle.