Bitcoin Price Rebounds Above $112K – Analysts Say Bull Market Still Strong
Markets spent the past week on edge as Bitcoin swung violently, but the latest recovery above $112,000 has sparked renewed optimism.
Instead of signaling exhaustion, analysts say the recent turbulence may have set the stage for the next surge.
XWIN Research highlights that Bitcoin’s bull market remains intact, pointing to a key on-chain metric: the Market Value to Realized Value (MVRV) ratio. Now at 2, the indicator suggests that overheated conditions have cooled and that BTC has entered a healthier phase for continued growth. Historically, similar readings in 2017 and 2020 preceded powerful rallies after mid-cycle corrections.
Another encouraging signal is the behavior of long-term holders. Selling pressure from this group has eased, removing one of the main brakes on upward momentum. Together, these signs suggest that the current cycle has not reached its peak.
While Bitcoin regains its footing, Ethereum could be gearing up for fireworks of its own. The futures market has been stripped of most leveraged long positions, leaving shorts heavily concentrated. Analysts warn that this imbalance could quickly unravel — even a modest upward move might trigger cascading short liquidations, sparking a sharp rally.
XWIN Research argues that downside liquidity has already been drained, creating the conditions for a squeeze-driven surge. If Ethereum catches momentum, the rally could accelerate far faster than many traders expect.
Taken together, the picture is one of resilience and unfinished business for the two largest cryptocurrencies. Bitcoin’s correction appears to have been a reset rather than a collapse, while Ethereum may be positioned for one of the most dramatic reversals in months.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
