Bitcoin analysts claim that Bitcoin is still in the bull market as it temporarily recovered to more than $112,000 on Monday after a week of massive volatility.
Bitcoin (BTC) has struggled to earn profits last week as analysts said investors were showing signs of fatigue, and the sudden decline last week marked two major liquidation events across the broader crypto market.
Bitcoin hit a 24-hour high of $112,293 in early trading on Monday, surpassing $112,000 for the first time since it fell sharply on Thursday. According to Coingecko, it is currently trading at $111,835.
Blumarket is “not the end” for Bitcoin
However, crypto investment firm Xwin Research Japan said in a crypto memo on Sunday, “While there are volatility volatility these days, on-chain data continues to suggest that Bitcoin bull market is not over.”
The Bitcoin Market Value (MVRV) ratio to the long-term holder’s behavior and Bitcoin’s market value compares its market value with the holder’s average cost base, together indicating “beneath the surface resilience.”
“Bitcoin’s recent pullback looks like the end of the rally and a digestion period,” Xwin added.
Bitcoin’s MVRV ratio has dropped to 2, with an average cost base of about half the price of Bitcoin, and Xwin has historically said it “doesn’t reflect any panic or euphoria.”
“The investors are still sitting in healthy profits, but the market is cooling off from overheated,” he explained. In past cycles, he added that after consolidating this MVRV range, he saw Bitcoin enter “its strongest expansion phase.”
Meanwhile, earnings from long-term investors have decreased, with Xwin saying “we will effectively reduce available supply, offset short-term volatility, and update demand to raise prices.”
Xwin added that the two indicators “have not reached the terminal stage,” and that recent integrations “may mark the basis of the next major leg that agrees with Bull Market.”
Crypto has been reduced due to Bitcoin fall
The Bitcoin recovery comes after over $4 billion in bulls have been wiped out in two major liquidations over the past seven days.
The first major liquidation on Monday, September 22nd wiped out the advantages of just under $3 billion across the Crypto market, with Bitcoin falling 3% to below $112,000, bringing the remaining market down per Coinglass data.
The $1 billion liquidation was then followed up on Thursday with a total encrypted liquidation, again hampering the market as Bitcoin fell to $109,000.
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Bitcoin made up the majority of the liquidation on September 22, erasing $726 million in length, and Ether (ETH) long bets led Thursday, wiping out $413 million.
Code sentiment rises to “neutral”
Meanwhile, sentiment tracking the Crypto Fear & Greed Index rose to reflect the market’s “neutral” for the first time since Friday, September 19th, recovering from a period of “terror.”
The index hit a score of 50 out of 100 on Monday, up 13 points from Sunday.
The upward trend that the index has enjoyed since falling to a score of 28 on Friday continues.
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