Bitcoin price slipped to its lowest level in over two weeks on Monday, 18 May, as escalating macroeconomic concerns linked to the US-Iran conflict led traders to trim their exposure to risk assets.
The world’s largest cryptocurrency dropped to as low as $76,711 — its weakest level since May 1 — before recovering part of the losses. Other major digital assets, including Ether and Solana, also traded lower.
What’s weighing on Bitcoin prices?
Bitcoin prices tumbled as the broader cryptocurrency market witnessed nearly $500 million worth of bullish liquidations within just 15 minutes during early Asian trading hours, according to data from Coinglass, as quoted by Bloomberg.
The digital asset has faced mounting pressure in recent days amid growing uncertainty surrounding the US-Iran conflict, which has dampened sentiment toward riskier assets. Meanwhile, US-listed spot Bitcoin exchange-traded funds recorded over $1 billion in outflows last week — the first such occurrence since late January.
Oil prices continued to rise on Monday, while bond yields jumped and Asian equities traded lower. Investor sentiment remained weak due to the absence of progress on reopening the Strait of Hormuz, a vital global trade route. US President Donald Trump also warned that the “clock is ticking” for Iran to reach an agreement.
The selloff in Bitcoin intensified after the cryptocurrency breached a crucial support level near $77,800. Coinglass data showed that nearly $550 million in long positions were liquidated between 6:30 a.m. and 10:30 a.m. Singapore time.
“Bitcoin is currently navigating a crucial phase around the $80,000 mark, with markets closely watching whether BTC can sustain momentum above key resistance zones. While ETF outflows and macroeconomic uncertainty have created short-term pressure, the broader institutional interest in digital assets remains intact. The market is witnessing a healthy consolidation where investors are becoming more selective and disciplined rather than reacting emotionally to every correction. If Bitcoin manages to reclaim higher resistance levels decisively, it could open the door for renewed upside momentum across the broader crypto ecosystem,” said Avinash Shekhar, Co-Founder & CEO, Pi42.
Bitcoin prices near-term outlook
Shekhar further said that for investors, this is a phase that calls for patience, staggered participation, and a long-term approach instead of aggressive short-term positioning.
“Rather than chasing sudden rallies or reacting to temporary dips, investors should focus on portfolio allocation, liquidity management, and fundamentally strong digital assets with sustained ecosystem activity. Market cycles reward consistency and informed participation, and this phase could offer meaningful accumulation opportunities for those who stay focused on long-term wealth creation,” he added.
On the technical outlook, Harish Vatnani, Head of Trade, ZebPay, said that BTC witnessed a decent rally from $65,000 to $82,850, surging by almost 27%.
“In the weekly time frame, the asset was trading in an uptrend, forming a ‘Higher High Higher Low’ pattern. However, the bulls failed to maintain their grip on the asset, as last week saw some profit booking at higher levels, causing the price to correct to $77,000. BTC has a strong support zone between $75,000 and $73,000. If it bounces and sustains above these support levels, then we can expect the bulls to resume the upward move,” Vatnani said.
(With inputs from Bloomberg)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.