Cryptowzrd, in a recent update on Bitcoin’s daily technical perspective, observed that the market ended negatively, indicating potential for further declines. A decisive closure beneath the $110,500 support could signify a crucial transition, making lower thresholds worthy of scrutiny.
Daily Candle Indicates Bearish Pressure For Bitcoin
Cryptowzrd elaborated on his forecast by noting that Bitcoin’s daily candle ended on a bearish note, with prices now trading below the $110,500 support zone. This breakdown is noteworthy and might trigger additional selling pressure in the upcoming sessions if buyers are unable to regain this level.
He stressed that remaining below this support could pave the way for a potential move towards the $100,000 mark. Conversely, a robust bullish candle and a rapid recovery could nullify the bearish scenario, restoring buyer confidence.
In his analysis, he also underscored the performance of Bitcoin Dominance (BTC.D), which closed without a clear direction while exhibiting weakness. This decline in dominance is typically interpreted as a favorable indicator for altcoins, suggesting that capital is shifting away from Bitcoin and into alternative assets.
This change in market dominance showcases increasing market optimism in altcoins. When Bitcoin dominance plateaus or decreases, it generally fuels altcoin surges, enabling traders to diversify into promising opportunities across the marketplace.
Lastly, he pointed out that markets are transitioning into the monthly shift period, a time typically linked with heightened volatility and mixed sentiments. Entering the weekend, he stressed the necessity of maintaining a rational approach and avoiding extreme positions, while employing disciplined strategies as they await clearer confirmation signals.
BTC Volatility Prevails in Intraday Trading
Cryptowzrd noted that today’s intraday chart exhibited heightened volatility with a distinctly bearish tone, as Bitcoin dipped and is presently holding below the $110,400 intraday support. This level has since become crucial, as a breach signals diminishing buyer strength and elevates the risk of additional downside pressure.
He articulated that if Bitcoin retests $110,400 and fails to reclaim it, the level could transform into resistance. Such a situation would likely initiate a short setup, with price action targeting the $105,500 support region or even extending lower if bearish momentum intensifies. This renders the $110,400 area a critical battleground for traders closely observing intraday developments.
Conversely, Cryptowzrd indicated that a robust reclaim and maintenance above $110,400 could redirect momentum back towards the bulls, opening avenues for further upward pressure. However, the crypto analyst cautioned that the market currently possesses a lack of clarity, and traders should proceed prudently prior to making any haste.
