Bitcoin briefly surpassed $112,000 on Monday morning, recovering from a volatile week that saw two major liquidation events across the crypto market. The cryptocurrency hit a 24‑hour high of $112,293, surpassing $112,000 for the first time since Thursday's sharp decline. Current trading sits at $111,902.
Crypto investment firm XWIN Research Japan argued in a CryptoQuant note Sunday that on‑chain data continues to suggest Bitcoin's bull market remains active. While recent volatility unsettled traders, long‑term holder behavior and Bitcoin's Market Value to Realized Value ratio together show resilience beneath surface turbulence, according to the analysis.
Bitcoin's MVRV ratio dropped to 2, with average cost basis around half of Bitcoin's current price. XWIN explained that this historically reflects neither panic nor euphoria, as investors maintain healthy gains while the market cools from overheated conditions. Past cycles have seen Bitcoin enter its strongest expansion phase after consolidating in this MVRV range.
Profit‑taking by long‑term investors has fallen, effectively reducing available supply. This development offsets short‑term volatility and creates conditions for renewed demand to lift prices higher, according to XWIN's assessment. The firm concluded recent consolidation could mark the groundwork for the next major leg upward, suggesting the bull market remains alive.
The recovery follows devastating losses for crypto bulls, with over $4 billion wiped out in two major liquidations during the past seven days. Monday, Sept. 22 saw just under $3 billion in long positions across the crypto market eliminated as Bitcoin fell 3 % below $112,000, dragging the broader market down, according to CoinGlass data.
Thursday brought another $1 billion liquidation of total crypto longs, with the market again hampered by Bitcoin's drop to $109,000. Bitcoin made up the bulk of Sept. 22 liquidations with $726 million longs erased, while ETH long bets led Thursday with $413 million wiped out.
XWIN emphasized that while this cycle has experienced consolidation, it has not reached its terminal stage. The metrics indicate recent pullbacks appear less like the end of a rally and more like a period of digestion, with fundamental on‑chain indicators suggesting continued upward potential for the leading cryptocurrency.