Bitcoin (BTC) briefly surged past $112,000 early Monday, signaling a rebound after a volatile week that rattled traders and triggered billions in liquidations. Despite recent turbulence, analysts argue that the ongoing bull market remains intact.
Bitcoin’s Price Action and Market Volatility
After slipping sharply last week, Bitcoin climbed to a 24-hour high of $112,293, its first move above $112K since Thursday’s drop. At the time of writing, BTC trades at $111,835, according to CoinGecko.
The past week saw two major liquidation events that erased over $4 billion in long positions, highlighting investor exhaustion after Bitcoin’s rapid climb earlier this month.
- On Sept. 22, Bitcoin’s 3% decline below $112K triggered nearly $3 billion in liquidations.
- On Sept. 25, another $1 billion in long positions were wiped out as Bitcoin briefly fell to $109,000.
- The Market Value to Realized Value (MVRV) ratio currently sits at 2, with the average holder’s cost basis at roughly half of Bitcoin’s current price.
Analysts: Bull Market Still Intact
Despite these sharp moves, analysts at XWIN Research Japan stressed that on-chain indicators continue to signal bullish conditions.
- This level historically reflects a market that is neither in panic nor euphoria, but instead consolidating before the next expansion phase.
XWIN noted:
“Bitcoin’s recent pullbacks appear less like the end of a rally and more like a period of digestion.”
They added that long-term holder profit-taking has slowed, effectively reducing available supply and creating conditions for renewed upward momentum.
Liquidations Hit Crypto Bulls Hard
The liquidation events not only shook Bitcoin traders but also spread across the broader crypto market:
- On Sept. 22, Bitcoin accounted for $726 million in liquidations.
- On Sept. 25, Ethereum (ETH) led with $413 million in long bets erased.
These mass wipeouts highlight the risks of leveraged trading during periods of high volatility.
Market Sentiment Shifts Toward Neutral
The Crypto Fear & Greed Index reflects growing optimism. After sinking to 28 (Fear) last week when Bitcoin touched $80,000, the index has climbed to 50 (Neutral).
This rebound in sentiment suggests traders are regaining confidence, potentially setting the stage for Bitcoin’s next major upward leg.
While short-term volatility has unsettled traders, on-chain metrics and reduced selling pressure suggest Bitcoin is still within its bull cycle. Analysts expect the current consolidation could lay the groundwork for another upward move, with the $112K level acting as a key psychological pivot.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.