Jack Paul 
Bitcoin Shows Resilience After Recent Turbulence
Bitcoin has managed to climb back above $112,000 after experiencing significant volatility throughout the past week. The cryptocurrency reached a 24-hour high of $112,293 during early Monday trading, marking its first return to this level since Thursday’s sharp decline. Currently, Bitcoin sits at around $111,835 according to CoinGecko data.
This recovery comes after a challenging period where Bitcoin struggled to maintain momentum. Many analysts had noted signs of investor exhaustion, with the sudden price drop last week triggering two major liquidation events across the broader cryptocurrency market.
On-Chain Data Points to Continued Bull Market
Despite the recent turbulence, crypto investment firm XWIN Research Japan maintains that Bitcoin’s bull market remains intact. In a recent CryptoQuant analysis, the firm argued that while recent volatility has unsettled traders, underlying on-chain data continues to support the bull market thesis.
The analysis points to two key metrics that suggest resilience beneath the surface. Long-term holder behavior and Bitcoin’s Market Value to Realized Value (MVRV) ratio both indicate that the current pullbacks resemble a period of digestion rather than the end of the rally.
Bitcoin’s MVRV ratio has dropped to 2, which means the average cost basis for holders sits at approximately half of Bitcoin’s current price. Historically, this level reflects neither panic nor euphoria among investors. XWIN noted that investors are still sitting on healthy gains, yet the market has cooled from overheated conditions.
Supply Dynamics Support Price Recovery
Another encouraging sign comes from the reduction in profit-taking by long-term investors. This effectively reduces the available supply of Bitcoin on the market, which helps offset short-term volatility and creates conditions for renewed demand to push prices higher.
XWIN believes these metrics collectively show that this cycle hasn’t reached its terminal stage. The recent consolidation period might actually be laying the groundwork for the next major upward movement, suggesting the bull market remains alive and well.
Market Recovers from Major Liquidations
Bitcoin’s recovery follows two significant liquidation events that wiped out over $4 billion from crypto bulls in the past seven days. The first major liquidation occurred on Monday, September 22, with nearly $3 billion in long positions across the crypto market being eliminated as Bitcoin fell 3% below $112,000.
This was followed by another $1 billion liquidation of total crypto longs on Thursday when Bitcoin dropped to $109,000. Bitcoin long positions accounted for $726 million of the September 22 liquidations, while Ethereum long bets led the Thursday wipeout with $413 million erased.
Sentiment Shifts to Neutral
The Crypto Fear & Greed Index has shown improvement, rising to a “Neutral” reading of 50 out of 100 on Monday. This marks the first time the index has reached neutral territory since Friday, September 19, recovering from a period of “Fear.”
The index has been trending upward since hitting a low score of 28 on Friday, which was its lowest point since mid-April when Bitcoin sank to $80,000. The 13-point jump from Sunday to Monday indicates growing confidence among market participants.
While the path forward remains uncertain, the combination of improving sentiment, reduced selling pressure from long-term holders, and favorable on-chain metrics suggests Bitcoin may be positioned for its next upward move. However, as recent events have shown, volatility remains an ever-present factor in cryptocurrency markets.