FameEX Hot Topics | Bitcoin Bull Market Continues as Price Recovers Above $112K

Bitcoin surged past the $112,000 mark early on Monday, signaling a potential recovery after a week characterized by significant volatility. This upward move arrives amid a period where the cryptocurrency has struggled to maintain momentum, with analysts previously pointing to signs of investor exhaustion. The recent turbulence culminated in a sharp decline last Thursday, which triggered two major liquidation events across the wider digital asset market, wiping out billions of dollars. Monday's price action, therefore, represents a crucial test of the market's underlying strength.

The recovery saw Bitcoin hit a 24-hour high of $112,293 in early trading, breaching the $112,000 level for the first time since its sudden drop. According to data from CoinGecko, the cryptocurrency has since stabilized slightly, currently trading at $111,835. This price rebound offers a reprieve for investors following a volatile stretch that saw over $4 billion in bullish positions liquidated within the past seven days. These events had created a climate of uncertainty, making the return to these higher price levels a closely watched development.

Despite the recent instability, analysis from crypto investment firm XWIN Research Japan suggests the bullish trend remains intact. In a Sunday note published via CryptoQuant, the firm stated that while recent volatility has unsettled traders, on-chain data continues to indicate that “Bitcoin’s bull market is not over.” XWIN pointed to two key metrics that demonstrate “resilience beneath the surface”: the behavior of long-term holders and Bitcoin’s Market Value to Realized Value (MVRV) ratio.

The MVRV ratio, which compares Bitcoin's market value to the average cost at which investors acquired their coins, has dropped to a level of 2. This means the current price is roughly double the average purchase price, a zone that XWIN said historically “reflects neither panic nor euphoria.” The firm elaborated that this suggests the recent pullbacks are less a rally-ending event and more a “period of digestion.” Furthermore, profit-taking by long-term investors has declined, which effectively reduces the available supply and can help offset short-term selling pressure.

By combining these metrics, XWIN concludes that “this cycle has not reached its terminal stage.” The current consolidation phase, the firm argues, could be establishing the foundation for the next major upward movement. It noted that past cycles have seen Bitcoin enter “its strongest expansion phase” after consolidating within this MVRV range. Therefore, despite the nerve-wracking liquidations and price swings, the analysis posits that the groundwork is being laid for continued growth, suggesting the bull market is “alive and well.”

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