Bitcoin's Precarious Position: Daily Close Raises Red Flags Below £110,500

The latest technical outlook for Bitcoin has taken a concerning turn, as the market closed with a bearish tone that’s left many traders on edge. I’ve been watching this level closely, and the decisive close beneath the crucial £110,500 support zone doesn’t bode well for short-term prospects.

Daily Bearish Close Sets Worrying Tone

What’s particularly troubling is how Bitcoin’s daily candle finished firmly in negative territory. With price action now trading below the £110,500 threshold, we’re seeing a significant breakdown that could invite further selling in the coming sessions if buyers fail to mount a convincing recovery.

Should this support level remain breached, I wouldn’t be surprised to see a push toward the psychological £100,000 mark. That said, a strong bullish reversal candle and quick recovery could still invalidate this bearish setup, potentially restoring some confidence to the market.

The Bitcoin Dominance chart (BTC.D) is showing indecision with underlying weakness. This typically signals money flowing from Bitcoin into alternative cryptocurrencies, suggesting growing confidence in the broader market despite Bitcoin’s struggles. When dominance falters like this, it often creates opportunities in the altcoin space as traders diversify their positions.

Intraday Volatility Complicates Trading Landscape

Today’s chart has been particularly choppy, with sharp price swings dominated by bearish sentiment. Bitcoin has slipped below the £110,400 intraday support level, which now serves as a critical battleground. This level has transformed from support to potential resistance, and failure to reclaim it could trigger further downside momentum.

If Bitcoin retests £110,400 and gets rejected, we’re likely looking at a short setup with price targets around £105,500 or potentially lower if selling accelerates. Conversely, a strong move back above £110,400 might shift momentum back to bulls, though I remain skeptical given current market conditions.

With the monthly transition period approaching—historically a time of increased volatility—I’d advise caution before making any significant moves. The market lacks clarity right now, and weekend trading can be particularly unpredictable. Maintaining measured strategies and waiting for clearer signals seems the wisest approach in this uncertain environment.