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.
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Source: https://coindoo.com/bitcoin-price-rebounds-above-112k-analysts-say-bull-market-still-strong/