Bitcoin experienced a significant correction last week, falling 5.8% from its $82,000 level, triggering widespread concerns about a potential local top. According to reports from AMBCrypto, this pullback marked the first major cascade in approximately a month, with $630 million in positions liquidated on May 17th as BTC broke below $77,000. However, the composition of these liquidations revealed a notable shift in market dynamics, with 90% of the liquidations coming from long positions rather than shorts, suggesting a fundamental change in market sentiment.
The pullback has reinforced a broader risk-off tone among institutional investors, with Bitcoin ETFs experiencing significant outflows. As reported by AMBCrypto, these outflows have taken the lead, with institutional investors showing reduced conviction in the cryptocurrency. Additionally, the Coinbase Premium Index continues to trend in negative territory, indicating weak conviction from U.S. buyers. This combination of ETF outflows and negative premium signals suggests that the recent pullback may represent the early stages of a deeper correction, with some market participants positioning for potential moves toward the $60,000 zone.
Despite the recent correction, Bitcoin's long-term holders have demonstrated remarkable resilience and continued accumulation. According to data from CryptoQuant cited by AMBCrypto, long-term holders (LTHs) have accumulated 316,000 BTC over the past 30 days, reversing the 650,000 BTC that left long-term wallets during the late-year selloff. More significantly, LTH supply has risen to 15.26 million BTC, representing the highest level since August 2025. This accumulation pattern contrasts sharply with earlier capitulation phases and suggests that Bitcoin's supply continues to tighten even as the cryptocurrency trades more than 30% below its $126,000 peak.
The current market structure presents a complex picture of conflicting signals between technical weakness and fundamental strength. As reported by AMBCrypto, Binance Research's latest report highlights that nearly 60% of Bitcoin's supply hasn't moved in over a year, indicating significant market apathy. The SLRV (SOPR) metric is sitting deep in its historical bottom zone, signaling market apathy and suggesting that long-term holders dominate supply while short-term participants remain largely sidelined. This combination of on-chain strength and short-term pressure from ETF outflows creates a textbook deleveraging phase scenario, with the probability of a move toward $60,000 remaining limited in the near term.
