FameEX Hot Topics | Bitcoin Bull Run Far from Over as It Surges Above $112K

In a display of market resilience, Bitcoin surged past the critical $112,000 level early Monday, signaling a potential recovery from a week of intense volatility that had tested investor confidence. This upward movement breaks a period of stagnation during which the cryptocurrency struggled to maintain momentum, with analysts previously noting signs of widespread investor exhaustion. The recent turbulence reached its peak with a sharp decline last Thursday that triggered two major liquidation events across digital asset markets, wiping out billions of dollars in leveraged positions and creating widespread uncertainty. Against this backdrop, Monday's price action represents a crucial test of the market's underlying strength and its ability to recover from significant setbacks.

The recovery saw Bitcoin reach a 24-hour high of $112,293 during early trading sessions, marking its first return above the $112,000 level since last week's sudden downturn. According to data from market tracker CoinGecko, the cryptocurrency has since stabilized somewhat, currently trading at approximately $111,835. This rebound offers investors a much-needed reprieve following a volatile stretch that witnessed over $4 billion in bullish positions being liquidated within the past seven days. The return to these higher price levels represents a significant development for market participants who had been closely monitoring Bitcoin's ability to recover from the substantial liquidations that had created a climate of caution throughout the digital asset ecosystem.

Despite the recent price instability, sophisticated on-chain analysis from crypto investment firm XWIN Research Japan suggests the fundamental bullish trend remains intact. In a research note published via CryptoQuant on Sunday, the firm acknowledged that while recent volatility has unsettled traders, key blockchain metrics continue to indicate that "Bitcoin's bull market is not over." XWIN identified two specific metrics that demonstrate what they term "resilience beneath the surface": the behavior of long-term holders and Bitcoin's Market Value to Realized Value (MVRV) ratio, both of which paint a more optimistic picture than short-term price action might suggest.

The MVRV ratio, which compares Bitcoin's current market value to the average cost basis at which investors acquired their coins, has declined to a level of 2, indicating the current price is approximately double the average purchase price. According to XWIN's analysis, this level historically "reflects neither panic nor euphoria" but rather represents a healthy middle ground. The firm interprets this metric as suggesting that recent pullbacks resemble a natural "period of digestion" rather than the conclusion of the bull rally. Complementing this data is the observed decline in profit-taking by long-term investors, which effectively reduces available supply on exchanges and helps offset short-term selling pressure.

By synthesizing these crucial metrics, XWIN concludes that "this cycle has not reached its terminal stage," arguing that the current consolidation phase may actually be establishing the foundation for the next major upward movement. The firm notes that historical patterns show Bitcoin has typically entered "its strongest expansion phase" after consolidating within this MVRV range. Therefore, despite the nerve-wracking liquidations and price swings that characterized the past week, the data-driven analysis suggests the groundwork is being laid for continued growth, indicating that the underlying bull market remains "alive and well" and positioned for potential further advancement.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.