Bittensor (TAO) has the potential to bounce back up to $240, but further gains are unlikely. Despite an increase in capital inflow, market structure and dynamics remain bearish. Traders should brace for both scenarios.
Bittensor (TAO) fell below the $216 level on April 6 and reached $167 on April 7. Since then, it has bounced back by about 30% to retest the $216 zone, a key horizontal level from last month.
The daily chart of Bittensor shows that the downtrend has been in place since the last week of January when the previous low of $416 was broken. In the following weeks, the $434-$450 range shifted from support to resistance, which manifested towards the end of February.
Over the past six weeks, OBV has been steadily declining as TAO prices dropped from $470 to $180. In recent days, the $216 level has also flipped from support to resistance. Further losses were expected, and a price move towards $140-$126 seemed likely in April (the red demand zone).
Surprisingly, while Bittensor’s daily OBV has seen a slight increase in recent days, the CMF has shown a significant rise over the past week, reaching +0.05, a level some analysts use to denote significant inflows of capital.
The liquidation heatmaps for 1 month and 1 week show significant liquidity zones around $240 and $220. These levels are short-term price targets as they are notable magnetic areas near the current price.
Once $220 is reached, a bearish reversal becomes a possible consideration. It becomes more uncertain if $220 will see a bearish reversal or if TAO can climb to $240. Traders need to prepare for both possibilities. $240 also represents the 20-day moving average.
Alternatively, if the momentum shifts and TAO rises above $240, traders need to be even more cautious as this would likely lead to a rebound towards $280-$300, the 50-day moving average. Until $240 is reclaimed as short-term support, traders can maintain a bearish outlook.
Other indicators suggest optimism in the short term for TAO. The Supertrend has just turned bullish in 4H (though still red on the daily). And the Mean reversion Channel’s Bollinger band has tightened, indicating a strong movement on the way. TAO could indeed reach $240 today or tomorrow. But the medium-term trend remains bearish.
TAO appears bullish in the short term and could increase by 15% in the upcoming days. Here is a practical guide to buy TAO now on Bitget :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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