Bitcoin ‘bull market is not over’ as it recovers above $112K

Bitcoin has regained its footing, surpassing $112,000 on Monday after a week marked by volatility and significant liquidation events, suggesting that its bull market remains intact. Analysts from XWIN Research Japan indicate that on-chain data supports this view, describing the recent price drops as a period of digestion rather than an end to the rally. The Market Value to Realized Value (MVRV) ratio is at 2, suggesting healthy profit margins for investors amidst reduced panic and euphoria. Additionally, profit-taking by long-term holders has decreased, which could improve supply dynamics and lead to renewed demand. Despite more than $4 billion in liquidated long positions across the crypto market recently, sentiment appears to be shifting towards a neutral stance, as indicated by the rise in the Crypto Fear & Greed Index. This recovery indicates the possibility of an upcoming major price increase, reinforcing the notion that the bull market is proceeding into its next stage.

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