The Bitcoin bull market has not ended as it bounces back above the $112,000 level.

An analyst has asserted that Bitcoin is still in a bull market, as it quickly recovered above 112,000 USD on Monday, after a week of volatility.

In the past week, Bitcoin has struggled to maintain its upward trend, as analysts point out that investors are showing signs of exhaustion. The sudden drop last week led to two major liquidation events across the market.

At the beginning of the trading session on Monday, Bitcoin reached a 24-hour high of 112,293 USD, surpassing 112,000 USD for the first time since the sharp decline on Thursday. Currently, the price of Bitcoin is trading at 111,835 USD.

BTC price chart | Source: Coinphoton## The bull market is "not over" for Bitcoin

However, the cryptocurrency investment company XWIN Research Japan stated in a note from CryptoQuant on Sunday that, "although recent volatility has disrupted investors, on-chain data still indicates that the Bitcoin bull market has not ended."

The company stated that the behavior of long-term holders and the Market Value to Realized Value (MVRV) ratio of Bitcoin, comparing market value with the average cost of investors, indicates "resilience beneath the surface."

"The recent declines of Bitcoin seem less like the end of a bull run," XWIN added.

The MVRV ratio of Bitcoin has decreased to 2, with an average cost of about half the value of the Bitcoin price, which XWIN stated that history "does not reflect panic or excitement."

"Investors are still holding onto significant profits, while the market has cooled down from its overly hot conditions," the company explained, adding that previous cycles have seen Bitcoin enter the "strongest expansion phase" after consolidating within this MVRV range.

The MVRV ratio (in purple) of Bitcoin compared to its price (in black) since the end of 2024 | Source: CryptoQuantMeanwhile, profit-taking by long-term investors has decreased, which XWIN believes "really reduces the available supply, offsets short-term volatility, and creates conditions for new demand to push prices higher."

XWIN emphasizes that these two indicators show that "this cycle has not reached its final stage," and suggests that the recent consolidation "could mark the foundation for the next major bull run—indicating that the bull market still exists and is developing."

Long positions were devastated by the decline in Bitcoin

The recovery of Bitcoin comes after cryptocurrency speculators have lost more than 4 billion USD due to two major liquidations in the past seven days.

The first major liquidation on Monday, September 22, saw nearly 3 billion USD in long positions wiped out as Bitcoin dropped 3% below 112,000 USD, dragging down the rest of the market.

The liquidation volume of long positions across the market surged on Monday, September 22, and Thursday as Bitcoin dropped | Source: CoinGlassThis event was followed by a liquidation of 1 billion USD of total long positions in cryptocurrency on Thursday, as Bitcoin dipped again to 109,000 USD.

Bitcoin accounted for the majority of liquidations on September 22, with 726 million USD in long positions being wiped out, while long bets on Ether led on Thursday, with 413 million USD being wiped out.

Market sentiment rises to a "neutral" level

In this context, the Fear & Greed Index in cryptocurrency has risen, reflecting that the market is at a "Neutral" level for the first time since Friday, September 19, recovering from a period of "Fear."

The index scored 50 out of 100 on Monday, up 13 points from Sunday. This continues the upward trend that the index has experienced since it dropped to a score of 28 on Friday, the lowest level since mid-April when Bitcoin fell to 80,000 USD.

Mr. Teacher