The market is still trying to figure out what the recent pullback really means.
On the technical front, Bitcoin’s 5.8% correction from the $82,000 level last week caused a frenzy over whether this was a local top for the asset. Looking at the macro setup, the market split makes sense, leaving BTC’s current structure as a textbook example for speculative traders to take advantage of its volatility.
Recent data shows that bears have been the most profitable in this move.
According to CoinGlass, $630 million in positions were liquidated on May 17 as BTC broke below $77,000, marking the first major cascade in about a month. However, unlike April’s action, this time 90% of the liquidations came from longs.
Naturally, the market is starting to feel the pressure.
Data from CryptoQuant shows that the Coinbase Premium Index is still negative, indicating weak conviction from US buyers.
At the same time, BTC ETFs have turned negative, with outflows leading the way and reinforcing broader risk aversion among institutional investors. In this context, the pullback is starting to look more like the early stages of a deeper correction, with some positioning already eyeing the $60k zone.
The question now is whether the holder’s patience is starting to run out.
Long Liquidations Hit, But Bitcoin LTHs Remain Stable
To separate a short-term setback from a healthy reset, monitoring capitulation signals is critical.
Despite the recent correction, Bitcoin remains [BTC] shows no clear signs of exit liquidity. Instead, on-chain data shows that long-term holders (LTHs) are at their highest level since 2025.
According to CryptoQuant, LTH supply has increased to 15.26 million BTC, the highest since August 2025. In fact, LTHs have accumulated 316,000 BTC over the past 30 days, reversing the 650,000 BTC left in long-term portfolios during the year-end sell-off.
Zooming out, when combined with the latest from Binance Research reportthe arrangement becomes clearer. The chart shows that the SLRV is deep in its historical bottom zone, indicating market apathy. This indicates a market where long-term holders dominate the supply, while short-term participants remain largely sidelined.
Notably, the report also highlights that almost 60% of Bitcoin supply has not moved in over a year.
Despite Bitcoin still trading more than 30% below its peak of $126,000, supply essentially continues to tighten. In the current context, this type of positioning reinforces a risk structure under price action, marking a clear difference from previous capitulation phases.
Against this backdrop, the recent downturn looks more like a textbook deleveraging phase than a structural collapse. In that sense, the chance of a move towards $60,000 in the short term remains limited.
Final summary
- Long-term bonds continue to accumulate even as the recent pullback leads to heavy liquidations.
- The strength within the chain contrasts with the short-term pressure from ETFs and derivatives flows.