Bitcoin Bulls See Through Volatility Amid $4B in Crypto Liquidations

Bitcoin's price surged to a new high on Monday morning, reaching $112,293 before returning to around $111,902. This brief spike came after a tumultuous week that saw over $4 billion in liquidations across the crypto market.

The recovery is attributed to XWIN Research Japan's analysis, which suggests that despite recent volatility, Bitcoin's bull market remains intact. According to their on-chain data, long-term holder behavior and the Market Value to Realized Value (MVRV) ratio show resilience beneath surface turbulence.

XWIN notes that the MVRV ratio has dropped to 2, with average cost basis around half of Bitcoin's current price. This historically reflects neither panic nor euphoria, as investors maintain healthy gains while the market cools from overheated conditions.

The firm believes that profit-taking by long-term investors has fallen, effectively reducing available supply and creating conditions for renewed demand to lift prices higher. They conclude that recent consolidation could mark the groundwork for the next major leg upward.