Bitcoin (BTC) Pulls Back to $77K After $82K Peak, Traders Turn Cautious
Lawrence Jengar May 18, 2026 14:48
Bitcoin retreats to $76,430 after hitting $82K. Selling pressure rises, ETF outflows signal fading institutional demand. Key metrics analyzed.
Bitcoin (BTC) has retreated to $76,430 as of May 18, 2026, following a volatile week that saw the cryptocurrency surge to a local peak above $82,000 before sellers regained control. The 1.97% daily drop reflects broader bearish momentum, with key market metrics signaling growing caution among traders.
According to Glassnode’s Week 21 Market Pulse, BTC experienced a steady pullback from the high-$60,000s to mid-$77,000s after peaking at $82,000, as selling pressure intensified. Spot Cumulative Volume Delta (CVD) plummeted 848.7%, indicating a significant shift to sell-side dominance. Despite this, Spot Volume rose by 4.2%, hinting that increased trading activity is not necessarily bullish but potentially driven by profit-taking and heightened volatility.
Futures and Options Data Reveal Bearish Sentiment
In the futures market, Open Interest declined by 2.9%, suggesting traders are reducing leveraged positions amid price uncertainty. However, Long-Side Funding Payments surged by 136.6%, reflecting some demand for long positions despite the overall cautious tone. On the flip side, Perpetual Futures CVD dropped by a staggering 278.7%, emphasizing heavy sell-side pressure.
The options market is leaning more bearish. The 25-Delta Skew jumped 42.75%, showing increased demand for downside protection. At the same time, Open Interest and Volatility Spread rose 1.7% and 124.52%, respectively, indicating growing participation and expectations of higher price swings in the near term.
ETF Outflows and Institutional Weakness
The ETF market mirrors the shift in sentiment. Spot Bitcoin ETFs recorded $1 billion in outflows last week, breaking a six-week streak of inflows. This follows a $268 million outflow on May 7, 2026, which had already disrupted bullish momentum. While ETF trade volume rose 7.0%, the MVRV ratio—a metric indicating whether assets are over- or undervalued—declined by 6.1%, signaling weaker institutional conviction.
On-chain activity added to the mixed picture. Active addresses declined, suggesting subdued retail participation, while Entity-Adjusted Transfer Volume grew, possibly driven by larger capital movements. Long-term holders (LTHs) remain resilient, with their dominance increasing. However, profitability metrics such as the Net Unrealized Profit/Loss (NUPL) ratio and Realized Profit-to-Loss Ratio weakened sharply, reflecting fading market euphoria.
Market Structure and Outlook
Despite the bearish undertones, Bitcoin’s market structure remains relatively stable, supported by strong LTH holdings and steady liquidity. However, the broader setup appears to be entering a consolidation phase, with momentum fading after the rally from February’s lows near $60,000. Speculative positioning is increasingly defensive, as traders brace for further downside potential.
Key dates ahead include potential macroeconomic catalysts and ETF flow updates, which could influence market sentiment. Traders should monitor on-chain metrics, options positioning, and spot price levels near $75,000 for signs of support or further breakdown.
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