24/7 SUPPORT
Download App
Published: 18 May 2026,05:59
Daily Market Analysis New
*Bitcoin drops below $79,000 as crypto sentiment weakens, with total market capitalization falling below $2.7 trillion amid broad-based selling pressure.
*Rising Treasury yields and sticky inflation fears outweigh CLARITY Act optimism, reinforcing risk-off sentiment and delaying expectations for monetary easing.
*Over $500 million in leveraged liquidations and ETF outflows accelerated downside momentum, with BTC support now closely watched at the $75,000–$77,000 zone.
The cryptocurrency market has experienced a sharp reversal in sentiment, driving prices to multi-week lows and wiping out recent gains tied to regulatory progress. Bitcoin has declined below the $79,000 level, trading near $78,000–$79,000 after briefly reaching over $82,000 earlier in the week. The total crypto market capitalization has fallen below $2.6 trillion, reflecting broad-based selling pressure across major assets.
This downturn follows the initial positive reaction to the US Senate Banking Committee’s 15-9 bipartisan approval of the Digital Asset Market Clarity Act (CLARITY Act) on May 14. The bill, which aims to provide regulatory clarity by distinguishing between securities and commodities and outlining oversight roles for the SEC and CFTC, initially fueled optimism and a swift rally. However, these gains proved short-lived as macroeconomic headwinds overshadowed the regulatory tailwind.
Key drivers of the selloff include surging US Treasury yields, with the 10-year note climbing amid persistent inflation concerns. April CPI data showed a three-year high of 3.8%, reinforcing fears of stickier inflation and potentially delaying monetary easing. This macro rout triggered risk-off flows, pressuring equities, gold, and crypto simultaneously. Significant leveraged liquidations—exceeding $500 million in a single session—amplified the decline as long positions were wiped out. Additional factors such as spot Bitcoin ETF outflows and renewed profit-taking from miners contributed to the downward momentum.
The pullback highlights crypto’s continued sensitivity to broader financial conditions despite maturing institutional interest. While the CLARITY Act represents a meaningful long-term structural positive, near-term price action remains dominated by macro variables including bond yields, inflation trajectory, and global risk appetite—further influenced by ongoing Middle East tensions and elevated energy prices.
Sentiment remains fragile with support levels eyed near $75,000–$77,000 for Bitcoin. A sustained break lower could test deeper supports, while renewed macro stability or further legislative progress on the CLARITY Act may aid recovery toward $82,000. Volatility is expected to stay elevated amid upcoming economic data releases. Investors should maintain disciplined risk management given the asset class’s inherent fluctuations.
Technical Analysis
Bitcoin has fully reversed from its previous bullish rally, with recent price action signaling a deterioration in market structure. The bearish outlook has been reinforced after BTC broke below a critical liquidity zone, suggesting a structural breakdown and a shift in momentum toward the downside.
The breach of this key support area indicates that selling pressure has intensified, increasing the likelihood of further weakness in the near term.
Momentum indicators also support the bearish scenario. The Relative Strength Index (RSI) is approaching oversold territory, reflecting growing downside pressure, while the Moving Average Convergence Divergence (MACD) has moved below the zero line, signaling that bearish momentum continues to strengthen.
Taken together, the current technical setup suggests that the bearish bias remains dominant, with the potential for additional downside movement should BTC fail to reclaim key resistance levels.
Resistance Levels: 79,271.50, 81,280.00
Support Levels:76,633.60, 74,080.25
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
