Bitcoin News Today: Bitcoin breaks below $117,000 support amid key gap fill risk

Bitcoin’s recent breakdown below the $117,000 support level has sparked heightened volatility and raised concerns about a potential gap fill, signaling a significant shift in market dynamics [1]. On-chain data reveals a sharp accumulation of 720,000 BTC at this critical price point, indicating a fierce battle between bullish and bearish forces as the market navigates a complex double anchor chip structure [2]. The breakdown suggests a short-term directional shift, with increased likelihood of further downward movement into the gap zone.

The current chip structure involves two key clusters: the upper zone between $116,000 and $119,000, and a lower cluster between $102,000 and $109,000. The upper zone is tall but narrow, making it particularly vulnerable to a break. If both clusters hold firm, the pullback bottom is expected to settle near $112,000 to $113,000, a key gap zone in Bitcoin’s chip structure [3]. This area has historically acted as a turning point for liquidity and price correction.

The breach of $117,000 also draws attention to the potential for a larger gap fill in the $121,000–$123,000 range, where a Fair Value Gap remains unfilled. Analysts suggest this area could attract significant liquidity as the price retraces, potentially triggering further downward pressure [4]. The likelihood of Bitcoin reclaiming this level quickly depends on market sentiment and institutional activity. A swift recovery above $117,000 would signal renewed bullish momentum and could pave the way for an upward breakout after short-term volatility. Conversely, a failure to regain this support increases the probability of deeper retracement.

On-chain analyst Murphy points to the unusually high volume accumulation at $117,000 in the URPD chip structure, reinforcing the idea that this level has become a psychological battleground [5]. The 720,000 BTC clustered at this point suggests a strong tug-of-war between buyers and sellers. Historical patterns indicate that such accumulations often precede decisive price movements, either upward or downward.

The evolving technical setup is also reflected in broader market indicators. Platforms like TradingView highlight bearish signals in similar asset classes, suggesting a consistent trend in risk-off sentiment [6]. While the reports do not provide direct forecasts, the current trajectory indicates a high probability of price retesting lower levels. Traders are advised to closely monitor key support and resistance levels, as well as signs of potential reversals or continuation patterns in the coming weeks.

The implications of a sustained breakdown could extend beyond immediate price action, influencing broader market positioning and investor psychology. If Bitcoin fails to stabilize near the $112,000–$113,000 level, it may test the next layer of support below, further deepening the correction phase. Analysts emphasize the need for caution in a market that remains highly sensitive to macroeconomic developments and sentiment shifts.

[1] https://en.coinotag.com/breakingnews/bitcoin-support-breach-at-117000-signals-potential-gap-fill-and-critical-market-turning-point/

[4] https://www.binance.com/en/square/post/277187****7081

[6] https://in.tradingview.com/ideas/buy-sell/