As a crypto investor, I’m seeing some pretty concerning signals on Bitcoin’s charts. It’s been dropping, and by Monday morning, it had fallen below all its major moving averages – those lines traders use to gauge trends. Basically, the technicals are looking really bearish right now.
I’m watching Bitcoin right now, and it’s trading around $76,750. It’s currently below all of its key moving averages – the 20-hour one is at $77,580, the 50-hour is at $78,120, the 100-hour is at $78,767, and the 200-hour is even higher at $79,350. This suggests a potential downtrend, at least in the short term.
The MACD indicators confirmed the downward trend: the MACD line was at -359, the signal line at -243, and the difference between them, shown by the histogram, was -116.
Geopolitical Shock Hits An Already Weakened Market
The situation escalated Sunday night when U.S. President Donald Trump issued a strong warning to Iran on his social media platform, Truth Social.
Following unsuccessful diplomatic negotiations and a conversation with Israeli Prime Minister Benjamin Netanyahu, Donald Trump warned Iran that they need to act quickly, stating that if they don’t, the consequences could be severe. He emphasized the urgency of the situation.
The news quickly impacted financial markets. Oil prices rose, and the US dollar gained value. Investors became more cautious and started selling off riskier investments, with Bitcoin being one of the first to decline.
As of early Monday, my research showed Bitcoin trading around $76,780. That represented a decrease of about 1.55% compared to its value 24 hours earlier, based on data from Coingecko.
As I monitored the market today, Bitcoin’s price fluctuated significantly, dropping from around $78,530 to nearly $76,680. We saw over $24 billion in trading volume, and this rapid decline wiped out about $33 billion from Bitcoin’s total market value in just a few hours.
ETF Outflows Had Already Set The Stage
News about Iran added to existing worries in the financial market. On May 13th, US Bitcoin ETFs saw a record $635 million withdrawn in a single day – the biggest drop since late January.
This outflow brought the total for the week to $1 billion, ending a six-week period of consistent gains for ETF funds. Further selling occurred afterward, suggesting that large investors are now less eager to buy after a recent surge in purchases.
Several factors contributed to the downturn. Persistent inflation, as shown in both producer and consumer price reports, dampened market confidence. Increasing interest rates on government bonds further intensified the pressure, and low trading volumes over the weekend exaggerated every price fluctuation.
In early May, Bitcoin’s price rose, approaching $80,000 to $82,000, partly due to positive feelings about the Clarity Act. However, it repeatedly tried and failed to surpass a key price level, making the market vulnerable. This led to investors selling their Bitcoin to realize profits.
Support And Resistance In Focus
Traders are currently focused on two important price levels. They’re watching for potential resistance between $79,000 and $82,000, and looking for support around $74,000 to $76,000.
Stock prices could rise temporarily if global tensions calm down, as the market may have already fallen too far, too fast. However, if the conflict between the US and Iran worsens or oil prices continue to increase, experts believe selling will likely continue for some time.
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2026-05-18 21:45