Bitcoin climbed back above $112,000 on Monday, offering relief to investors after a turbulent week marked by sharp price swings and billions in liquidations. Despite the volatility, analysts insist the cryptocurrency’s broader bull cycle remains intact.
According to CoinGecko, Bitcoin reached a 24-hour high of $112,293 in early trading before settling around $111,835. The rebound follows a week in which the world’s largest digital asset faced intense selling pressure, sparking two large-scale liquidation events across the crypto market.
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Analysts: Volatility Doesn’t Signal the End
Crypto investment firm XWIN Research Japan argued in a CryptoQuant note that “Bitcoin’s bull market is not over,” citing on-chain signals that point to resilience beneath the surface.
The firm highlighted Bitcoin’s Market Value to Realized Value (MVRV) ratio, which currently sits at 2 — a level historically associated with healthy, sustainable conditions rather than market extremes. “Investors are still sitting on strong gains, yet the market has cooled from overheated conditions,” XWIN wrote, suggesting the pullback looks more like a consolidation than the end of a cycle.
Bitcoin’s MVRV ratio (purple) compared to its price (black) since late 2024. Source: CryptoQuant
Long-term holder behavior has also remained steady, with fewer investors taking profits. This trend, XWIN explained, “effectively reduces available supply, offsetting short-term volatility and setting the stage for renewed demand.” The firm concluded that the current consolidation could serve as the groundwork for the next major upward move.
$4B in Longs Wiped Out
The rebound comes after heavy losses for leveraged traders. On Sept. 22, nearly $3 billion in long positions were liquidated across the crypto market as Bitcoin dipped 3% below $112,000. A second wave of liquidations on Sept. 25 erased another $1 billion in long bets, pushing Bitcoin briefly down to $109,000.
The amount of long liquidations across the market surged on Monday, Sept. 22, and Thursday as Bitcoin fell. Source: CoinGlass
Bitcoin accounted for $726 million of liquidations during the first event, while Ether led the second with $413 million in wiped-out positions.
Sentiment Turns Neutral Again
Despite the volatility, sentiment indicators are improving. The Crypto Fear & Greed Index rose to a “Neutral” score of 50 on Monday — up from 28 on Sept. 19, when fear gripped the market following Bitcoin’s sharp decline.
The move suggests investor confidence is slowly recovering, even as traders brace for continued short-term fluctuations.
“Bitcoin’s recent pullbacks appear less like the end of a rally and more like a period of digestion,” XWIN noted, emphasizing that the bull market cycle has “not reached its terminal stage.”