Despite recent volatility, on-chain indicators remain strongly positive. Analysis by XWIN Research Japan suggests that the current consolidation may be the basis for further growth in the price of Bitcoin.
On-chain metrics show market stability
According to XWIN, the market is holding steady thanks to the behavior of long-term investors and the MVRV indicator, which compares the market price to the average purchase price. The current MVRV value is 2, which means that the average purchase price is roughly half of the current value.
The company notes that a similar range has appeared in the past before a strong price expansion. In addition, the decline in profit-taking by long-term holders limits supply and creates room for growth in demand, which can push the price higher.
Liquidation and change in investor sentiment
Over the past seven days, long positions worth more than $4 billion have been liquidated on the market. The biggest wave came on September 22, when a drop below $112,000 resulted in liquidations worth nearly $3 billion. The second wave subsequently wiped out positions worth $1 billion when the price fell below $109,000.
Meanwhile, the Fear and Greed Index has returned to neutral territory, reaching 50 points on Monday. This indicates a retreat of fear from the market and confirms a return to balance, which may support further growth. According to analysts, the current period resembles a “breathing space” before another significant price movement. After a brief panic, investors are returning to the game, and the market shows that despite volatility, it has enough strength to continue the long-term bullish trend.
