Key Takeaways
- Bittensor (TAO) price reacts sharply at the Fair Value Gap and trendline confluence, hinting at a bullish continuation.
- Bearish divergence signals possible retracement, with risks of a deeper pullback below key levels.
- A short-term setup favors the upside, but a broader trend requires strong volume to sustain any rally.
Bittensor (TAO) is currently at a crucial inflection point, showing clear signs of bullish strength after rebounding off the Fair Value Gap (FVG) zone, tightly aligned with an ascending trendline.
This convergence has become the focus of attention among traders trying to squeeze the potential breakout. The recent price volatility between the ranges of $373.5 and $374.5 has established firm buyer demand, as TAO accurately respected the zone of convergence.
This is accompanied by structural support, as the market confirmed the break of structure (BOS) to the upside, which again set the bullish tone. The setup provides a low-risk entry between the price ranges of $373.5 and $374.5, with narrow invalidation below $371.5.
Targets are plotted at $376.8, which is an area of local liquidity, and then at $381.0, just higher than recent BOS. Traders should wait for the confirmation of the candle to move higher through the trading area at $375 and trigger the entries, using partial exit on the first target and trailing stop toward breakeven to cut loss exposure.
Negative Divergence Clouds Long-Term Picture
Whereas the near-term move is leaning bullish, the larger context indicates potential weakness. The authorities are warning of potential trend exhaustion through negative divergence, particularly on the higher timeframes.
The weekly chart is more bearish, as Bittensor is losing its upward pace as the price struggles to maintain support. If the divergence holds, the trend is likely to retrace into the zone of $300.00 to $225.00.
This level of support is now the key battleground. A sharp move below $225.00 has the potential to unleash an accelerated decline to the $95.00 level.
While the bearish scenario hangs as an undercurrent, it is contingent on Bittensor breaking below the ascending trendline and shedding major support zones. Until then, the bulls still have the short-term upper hand.
Bittensor (TAO) Upside Targets If Bulls Prevail
If support holds firm and volume begins to build, a bullish scenario could unfold rapidly. A breakout above $375 would clear the immediate resistance, and Bittensor may climb toward $488.00, with momentum-driven targets extending toward $1,650 if broader market sentiment aligns and capitalization expands.
This perspective requires persistent buying demand and good macro conditions, though. Meanwhile, both market sides are watching as TAO sits atop the proverbial knife-edge on the technical side.
Related Reading | Stablecoin Showdown: Crypto Bill Faces Collapse as Senate Democrats Withdraw Support