What happened on May 18
Bitcoin opened at $77,414.91 on Monday, the weakest monthly open recorded so far in May 2026, and then slid further to a session low of $76,803.25 by the early US morning. Within hours the leveraged side of the market unwound: more than $661 million in crypto futures positions were forcibly liquidated over a 24-hour window, with roughly 95% of the wipeout coming from bullish long trades, according to derivatives trackers cited by Yahoo Finance.
Total crypto market capitalisation slipped 3.8% to $2.56 trillion on the day. Out of 390 actively tracked tokens, only 38 closed in the green while 352 declined, a breadth reading that confirms the move was not isolated to a single asset class.
Why the market sold off
Three macro inputs lined up against risk assets at the same time. First, escalating tensions between the United States and Iran prompted a defensive rotation across global markets and pulled oil prices higher. Second, sticky US inflation data has reduced the odds of near-term Federal Reserve easing, keeping real yields elevated. Third, the leveraged structure of the crypto market amplified the move once the first support cluster broke.
CoinDesk and other macro desks have flagged $76,000 as the line in the sand for the month. Fundstrat's Tom Lee told clients earlier in May that a monthly close above $76,000 would technically confirm the resumption of a new bull market, while a close below would force the bull thesis back to the drawing board.
Ethereum and altcoins follow lower
Ethereum opened at $2,129.87 on Monday, the lowest opening print since April 7, and held that range as Bitcoin tested the $76,800 floor. The broader altcoin tape was mixed but skewed sharply negative: OriginTrail (TRAC) was the rare outlier with a +54.84% advance, while ACAUSDT crashed -51.35%, per CoinCodex market data.
What the levels say
The classical pivot point for Bitcoin currently sits around $77,739, with first support at $76,940, then $76,430, and the strongest near-term support at $75,632. Resistance levels print at $78,248, $79,047 and $79,557. The 200-day moving average remains the structural reference: above it, dip buyers tend to defend; below it, trend-following systems flip short.
The RSI is sitting near 46 — neutral, not yet oversold. MACD remains tilted bearish on the daily timeframe but has not crossed into capitulation territory. Translation: this is a controlled flush so far, not a panic.
Institutional bid still present
Even with spot under pressure, structural demand has not vanished. US-listed spot Bitcoin ETFs hold roughly $123.5 billion in assets under management, with BlackRock's IBIT alone at $54 billion. That bid base did not disappear when price slipped; ETF order books simply re-rated lower with the market.
## What to watch next Traders are focused on three near-term catalysts. The monthly close at the end of May will validate or invalidate the Tom Lee thesis. The next US inflation print will reset rate-cut expectations. And any de-escalation or escalation signal from the Middle East will continue to drive the geopolitical risk premium baked into oil and safe-haven flows. A daily close back above $78,250 would neutralise the immediate bearish setup. A close under $75,632 would open a path toward the $74,000 handle, where deeper bid clusters are visible on order-book heatmaps. ## FAQ **Q1: Why did Bitcoin drop on May 18, 2026?** A combination of US-Iran geopolitical tension, sticky US inflation reducing the probability of Fed rate cuts, and a $661 million leveraged long liquidation cascade pushed BTC from $77,414 to $76,803 in a single session. **Q2: Is the bull market over?** Not yet. Fundstrat's Tom Lee has identified a monthly close above $76,000 as the technical confirmation of a continuing bull cycle. As long as the May close holds above that line, the structural uptrend is intact. **Q3: What support levels matter most for Bitcoin right now?** The pivot is at $77,739. First support sits at $76,940, with stronger support at $75,632. A clean break of $75,632 would expose $74,200 and then the $73,500 zone. **Q4: Are institutions still buying Bitcoin?** Yes. US spot Bitcoin ETFs hold approximately $123.5 billion in AUM. BlackRock's IBIT alone manages $54 billion. ETF flows can swing daily, but the structural institutional bid remains intact. **Q5: How did Ethereum perform during the sell-off?** Ethereum opened at $2,129.87 on Monday, its lowest opening price since April 7. The pullback was broad-based across major caps, with most large-cap altcoins tracking Bitcoin lower. --- *Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk and you should consult a qualified financial advisor before making any investment decision. Past performance is not indicative of future results.*