Bitcoin
|2 min ReadBitcoin recovers above $112K as bulls say the run isn’t done
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Bulls frame the dip as digestion, not defeat
Bitcoin fought back early Monday, tapping a 24-hour high of 111,835, according to CoinGecko. Last week’s slide sparked talk of exhaustion, with some analysts saying investors were showing signs of fatigue. The price action was violent. The message from on-chain bulls is simple. The bull market is not over.
XWIN Research Japan wrote in a CryptoQuant note that long-term holder behavior and Bitcoin’s Market Value to Realized Value ratio point to resilience. MVRV has dropped to 2. That means the average cost basis sits at roughly half the market price. Historically that level reflects neither panic nor euphoria. Pullbacks look like digestion, not the end of a rally. Profit taking by long-term holders has also fallen, tightening available supply and helping any renewed demand lift prices.
Two liquidation shocks reset positioning
The bounce follows two major washouts that erased over 3 billion in long positions were liquidated as Bitcoin slipped 3 percent below 1 billion in long liquidations as Bitcoin fell to 726 million wiped. On Thursday, Ether long bets took the hit with $413 million erased.
Sentiment crawls back to neutral
The Crypto Fear & Greed Index climbed back to Neutral on Monday with a score of 50, up 13 points from Sunday. It continues an uptrend from Friday’s low at 28, the weakest since mid-April when Bitcoin sank to 112,000 and the bull case is alive.
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