Bitcoin dropped to approximately $76,700 on May 18, marking its lowest level in over two weeks and triggering more than $661 million in liquidations across centralized exchanges within 24 hours.
Long positions absorbed the bulk of the damage, with roughly $584 million in longs liquidated compared to significantly lower short liquidations.
Liquidation data and leverage flush
The distribution of liquidations shows clear one-sided deleveraging. Longs represented the overwhelming majority of wiped positions, indicating that leveraged bullish exposure built during the prior recovery was quickly flushed as price broke below $77,000.
This type of liquidation imbalance often signals exhaustion of weak long hands rather than aggressive short selling pressure.
Market structure and positioning
Despite the heavy long liquidation, open interest across major exchanges remains relatively elevated. This suggests that while weak leverage has been removed, a significant amount of positioning is still active.
Funding rates turned negative following the move, reflecting a shift in sentiment as leveraged longs were forced out of the market.
Key levels and short-term risk
Bitcoin is now trading below both the $77,000 and $78,000 zones. The $76,000 – $76,500 area has become the immediate level to watch.
A sustained break below this range could trigger another wave of liquidations, while a quick recovery above $78,000 would be required to stabilize the market and reduce downside pressure on leveraged positions.
The current setup points to a market that has undergone a meaningful deleveraging event but has not yet found strong directional conviction.
With open interest still elevated and funding rates negative, further volatility remains likely until price either reclaims key resistance or confirms lower supports through additional liquidation pressure.
