Bitcoin News Today: Bitcoin Faces Breakdown Risk Below $116K Targeting $111K as Support Tests Intensify

Bitcoin’s price has been consolidating near $120,000, but technical and on-chain analyses highlight growing risks of a breakdown below key support levels. Analysts warn that a sustained drop below $116,000 could trigger a sharp decline toward $111,000, with implications for near-term market sentiment [1].

The cryptocurrency has been trading in a tight range between $116,000 and $120,000, a zone aligned with critical Fibonacci extension levels of 0.5-0.618. This equilibrium reflects a balance between buying and selling pressures, suggesting the market is awaiting a catalyst to break the stalemate. However, the lack of strong bullish momentum increases the likelihood of a correction below $116,000, with $111,000 identified as the next major target [1]. On the 4-hour chart, Bitcoin’s price action has formed a bullish flag pattern—a continuation setup. While multiple rebounds from $116,000 have occurred, repeated testing of this level has created a liquidity pool below it, raising the probability of a bearish breakout. A failure to hold above $116,000 could see the price accelerate toward $111,000, the flag’s lower boundary [1].

On-chain data reveals a tug-of-war between liquidity clusters above $120,000 and below $116,000. These zones contain significant leveraged futures positions, making them vulnerable to aggressive liquidations if triggered. A move toward either level could spark cascading selling or buying pressure, intensifying volatility and accelerating price movements. For now, Bitcoin remains trapped between these thresholds, with a breakout above $120,000 or breakdown below $116,000 expected to drive sharp directional moves [1].

Separate analysis from TradingView underscores the vulnerability of $117,000 as a pivotal short-term resistance. A breakdown below this level could initiate a rapid descent to $111,000, fueled by stop-loss orders and forced liquidations. Similarly, Leap Digital Investments notes that Bitcoin’s peak at $123,100 may mark a local top, with the asset likely to test $111,000 before revisiting all-time highs [2][3]. The firm emphasizes that the $111,000 zone represents a critical confluence of psychological and technical support, including prior resistance and Fibonacci retracement points. A failure to hold above this threshold could invite further downward pressure, particularly in a broader bearish market context [3].

Traders are advised to monitor volume patterns and on-chain metrics for confirmation of bearish momentum. While short-term weakness could trigger a sell-off, analysts caution against overreacting to isolated breakdowns. The $117,000 level remains a crucial psychological barrier; a rebound above it could reinvigorate the bullish narrative, while a decisive close below $111,000 would likely reframe the market’s trajectory [3].

Sources:

[1] [Bitcoin Breakdown? BTC Price Analysis Warns of Sharp Drop Below $111K](https://coinmarketcap.com/community/articles/68822871ee5d734e975bb64b/)

[2] [Bitcoin / TetherUS Trade Ideas — BINANCE:BTCUSDT](https://www.tradingview.com/symbols/BTCUSDT/ideas/page-20/)

[3] [Leap Digital Investments](https://leapdigitalinvestments.com.au/)