Bitcoin's recent price correction was largely influenced by a leverage unwind in derivatives markets, resulting in $132 million in short positions being liquidated. On-chain data from Glassnode and CryptoQuant reveals that over 90% of Bitcoin's circulating supply remains in profit, indicating that the correction was not due to a mass sell-off by long-term holders. The MVRV Z-Score, currently near 2.15, suggests a balanced market valuation, avoiding extremes of euphoria or oversold conditions. This data points to a structural reset rather than panic-driven selling, with stable exchange flows and consistent long-term holder behavior.