Bitcoin Struggles at $77,000 After $500M Sunday Liquidation Leaves No Recovery
Monday 18 May 2026 | Crypto | BTC/USD
Session Summary
Bitcoin closed Monday at $77,091, down 0.44% on the day. The session opened at $77,415 and reached a high of $77,674 before sellers stepped in and pushed price to an intraday low of $76,052 — a range of over $1,600. The close near the session midpoint offers no clear directional conviction. What makes this reading harder is the context: Sunday saw an estimated $500 million in leveraged liquidations across the crypto market, and Monday’s action showed no meaningful recovery from that event. Volume of $43.5 billion across the 24-hour window was substantial, confirming the liquidation was real and not a data artefact.
Daily Read
A $500 million liquidation event typically resets the market’s leverage profile. The expectation after such an event is that the path of least resistance clears somewhat — the forced sellers are out, the weak hands are washed, and price can begin to recover. The fact that Bitcoin did not recover on Monday is therefore a bearish signal. It suggests either that selling pressure from non-leveraged holders continued through Monday, or that the liquidity on the bid side is insufficient to absorb ongoing distribution from larger participants.
The broader macro context is mixed for Bitcoin. Fear and greed sits at 61.8 (greed territory), which historically has been associated with mid-cycle risk-on behaviour. However, gold’s advance today — a safe haven asset — running alongside Bitcoin’s flat-to-negative performance represents a textbook risk-off signal from institutional allocators who are choosing hard assets over crypto. When gold and Bitcoin diverge in favour of gold, the crypto market tends to follow the risk asset playbook rather than the store-of-value narrative.
Key Levels
| Level | Price | Context |
|---|---|---|
| Resistance | $78,000 — $78,500 | Above Monday’s high; reclaiming this zone signals recovery mode |
| Support / Entry | $76,000 — $76,500 | Monday’s intraday low zone; where buyers showed up earlier today |
| Stop (long from support) | $74,500 | A daily close below $76,000 opens a potential flush to the $74,000 — $75,000 region |
| Target 1 | $78,000 | Retest of Monday’s open area; R:R approximately 1.3:1 |
| Target 2 | $80,000 | Round-number target; R:R approximately 2.7:1 — only valid if $78,500 breaks cleanly |
Tomorrow’s Setup
Bias: Cautiously bearish in the absence of recovery signals. The failure to bounce after a major liquidation event shifts the burden of proof back to bulls — they need to show up convincingly above $77,500 to reassert control.
- Bull scenario: Asian session opens above $77,500 and drives toward $78,500. A clean break of $78,500 with volume would signal the liquidation lows are in and a run toward $80,000 is underway.
- Bear scenario: Overnight trade drifts below $76,000, the Monday low. A break and hold below $76,000 targets the $74,000 — $75,000 support cluster quickly. That is a 2 — 3% downside from current levels.
- Context: Bitcoin’s correlation with equity risk is elevated right now. Watch equity index futures in the Asian session as an early read on BTC’s direction.
Experience Guidance
New to crypto trading: After a $500 million liquidation event, the instinct is to buy the dip — but the absence of a Monday bounce means the dip may not be done yet. Wait for Tuesday to show its hand first.
Developing trader: The gold vs Bitcoin divergence today is a clean signal to read — when gold goes up and Bitcoin goes nowhere, the market is choosing institutional safety over speculative risk.
Experienced trader: The failure to recover after a liquidation flush is the highest-quality short signal in crypto. If $76,000 breaks on Tuesday with volume, that is a structured short with $74,500 as the target and $77,500 as the stop.
This content is for informational and educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. All trading involves risk. Crypto markets are highly volatile. Always conduct your own research before making any investment decisions.