The daily closure of Bitcoin raises caution - the breakthrough $110 500 may change the dynamics.

The crypto expert in a fresh review of the daily technical indicators of Bitcoin noted that the market closed with a bearish sentiment, leaving room for further decline. A decisive close below the support $110 500 could signify a key shift, making lower levels worth watching.

The daily candle signals bearish pressure on Bitcoin

The analyst expanded his forecast, indicating that the daily candle of Bitcoin closed bearish, and the price is now trading below the support zone $110 500. This breakout is significant and could trigger further selling pressure in the upcoming sessions if buyers are unable to reclaim this level.

He emphasized that holding below this support opens the way for a potential move towards the mark $100 000. However, a strong bullish candle and a quick recovery could negate the bearish setup, restoring buyers' confidence.

In the analysis, he also highlighted the dynamics of Bitcoin's dominance (BTC.D), which closed uncertainly, demonstrating weakness. This weakness in dominance is often viewed as a positive signal for altcoins, as it indicates a capital outflow from Bitcoin to alternative assets.

Such a shift in market dominance reflects the growing trust in altcoins. When Bitcoin's dominance pauses or declines, it usually stimulates an altcoin rally, allowing traders to diversify their portfolios into promising assets in the market.

Finally, he noted that the markets are entering a monthly transition period, a time often associated with increased volatility and mixed sentiments. Before the weekend, he emphasized the importance of maintaining rationality and avoiding excessive positions in any direction, adhering to balanced strategies in anticipation of clearer confirmation signals.

BTC volatility dominates intraday trading

The crypto analyst emphasized that today's intraday chart shows sharp volatility with a clear bearish tone, as Bitcoin has declined and is currently holding below the intraday support $110 400. This level has become critical, as its loss signals a weakening of buyer strength and increases the risk of further downward pressure.

He explained that if Bitcoin retests $110 400 and fails to reclaim this level, it may turn into resistance. Such a scenario is likely to trigger short positions, with price dynamics targeting the support zone of $105 500 or even lower if the bearish momentum accelerates. This makes the region $110 400 a crucial battleground for traders closely monitoring intraday setups.

On the other hand, the expert noted that a strong return and holding above $110 400 could shift the dynamics in favor of the bulls, opening the door for further upward pressure. However, the crypto analyst emphasized that the market currently lacks clarity, and traders should exercise caution before jumping into trading.

Disclaimer: For informational purposes only. Past results do not guarantee future performance.