Bitcoin Drops to $117.9K, Tests $127K Resistance
Bitcoin is experiencing rising volatility after plunging from $124,533 to $117,927, triggering $342 million in liquidations across the crypto market. Data from Glassnode shows the Deribit DVOL index near historic lows, indicating limited demand for downside protection and potential for sudden price shocks. Key resistance at $127,000 may cap further gains, while a successful breach could open an upside target of $144,000. Market sentiment has turned cautious amid profit-taking and macroeconomic concerns, intensifying selling pressure on Bitcoin prices. Short-term support remains around $118,000, with stop-loss orders likely clustering near this level. Traders should monitor liquidation events and volatility spikes, as low DVOL readings often precede sharp market movements. In the medium term, overcoming the $127,000 resistance could signal renewed bullish momentum and attract fresh inflows. Overall, Bitcoin’s current volatility underscores the importance of risk management and close attention to on-chain indicators.
Bearish
Bitcoin’s sharp drop to $117,927 and the resulting $342 million in liquidations highlight growing bearish pressure. The historically low Deribit DVOL index suggests complacency, where traders have limited protective positions, raising the risk of sudden spikes. The key hurdle at $127,000 could deter fresh buying, prolonging the downturn if selling pressure persists. Similar patterns emerged in previous 2021 corrections, where low volatility readings preceded rapid sell-offs. In the short term, traders may remain on the sidelines or reduce exposure until volatility and sentiment stabilize. However, if Bitcoin reclaims and holds above $127,000, it could trigger a relief rally toward $144,000, offering bullish relief. Until then, the overall outlook leans bearish as downside risks outweigh upside catalysts.