Bitcoin's Bull Market Persists Amid Volatility and Liquidations

According to Cointelegraph, Bitcoin (BTC) experienced a brief recovery, surpassing $112,000 on Monday after a week marked by significant volatility. Despite recent struggles, analysts maintain that Bitcoin remains in a bull market. The cryptocurrency reached a 24-hour high of $112,293, marking its first rise above $112,000 since a sharp decline last Thursday. Currently, Bitcoin is trading at $111,835, as reported by CoinGecko. Crypto investment firm XWIN Research Japan emphasized in a CryptoQuant note that despite recent market fluctuations unsettling traders, on-chain data indicates that Bitcoin's bull market is ongoing. The firm highlighted the behavior of long-term holders and Bitcoin's Market Value to Realized Value (MVRV) ratio, which compares its market value to the average cost basis of holders, as evidence of underlying resilience. XWIN noted that Bitcoin's recent pullbacks resemble a period of digestion rather than the end of a rally. The MVRV ratio has decreased to 2, with the average cost basis at approximately half of Bitcoin's price, historically reflecting neither panic nor euphoria. Investors continue to hold healthy gains, although the market has cooled from overheated conditions. Past cycles have shown Bitcoin entering its strongest expansion phase after consolidating within this MVRV range. The firm also observed a decline in profit-taking by long-term investors, effectively reducing available supply and offsetting short-term volatility, thereby creating conditions for renewed demand to elevate prices. XWIN asserted that the current cycle has not reached its terminal stage, suggesting that recent consolidation could lay the groundwork for the next significant upward movement, indicating that the bull market remains intact. Bitcoin's recovery follows substantial liquidations in the crypto market, with over $4 billion wiped out in two major events over the past week. The first liquidation on Monday, September 22, resulted in nearly $3 billion in long positions being erased as Bitcoin fell 3% below $112,000, impacting the broader market. A subsequent $1 billion liquidation occurred on Thursday, as Bitcoin's price dropped to $109,000. Bitcoin accounted for the majority of liquidations on September 22, with $726 million in longs eliminated, while Ether (ETH) led on Thursday with $413 million wiped out. Meanwhile, the Crypto Fear & Greed Index has risen to a "Neutral" sentiment for the first time since Friday, September 19, recovering from a period of "Fear." The index scored 50 out of 100 on Monday, increasing by 13 points from Sunday, continuing an upward trend since its lowest score of 28 on Friday, which was the lowest since mid-April when Bitcoin fell to $80,000.