Bittensor (TAO) has recently displayed signs of breaking out of its prolonged bearish trend with a significant impulse move. This shift in momentum could signal the beginning of a strong recovery. If a higher low forms at a crucial confluence zone, TAO might be positioned for a potential rally of up to 200%, targeting its previous range high.

TAO’s Market Structure: A Potential Shift

Over the past few weeks, Bittensor (TAO) has been entrenched in a persistent downtrend, characterized by lower highs and lower lows. However, recent price action suggests a possible reversal. TAO has broken above a critical lower high for the first time, signaling a potential shift in its bearish market structure. Currently, the price is hovering around a high-probability zone, which could act as a springboard for further bullish momentum—provided buyers confirm a higher low.

Key Technical Insights

  • Break in Bearish Market Structure: TAO has surpassed its most recent lower high, indicating a possible trend reversal and the first major sign of bullish momentum since the range high.
  • Testing the Golden Fibonacci and VWAP: The price is now interacting with the 0.618 Fibonacci retracement level, which aligns with the Volume Weighted Average Price (VWAP) anchored from the start of the current downtrend. This confluence creates a critical area to watch.
  • Point of Control (POC) as a Pivot Zone: If a higher low forms at this zone—where the POC, VWAP, and Fibonacci levels intersect—it significantly increases the likelihood of a strong upward move.

Technical Analysis: A Crucial Zone for Buyers

From a technical standpoint, the current price zone is highly significant for TAO. The alignment of key indicators, including the Point of Control (POC), the 0.618 Fibonacci level, and the anchored VWAP, creates a robust area of interest. If buyers can defend this level and establish a higher low, the setup for a Wave 3 bullish impulse becomes increasingly likely. This move could target the previous range high, representing a potential 200% rally from the current price zone.

“The confluence of technical indicators at this level makes it a critical inflection point for Bittensor (TAO).”

Zooming Out: Macro Perspective

On a broader scale, TAO remains within a large sideways range. The recent bounce from the range low highlights buyer interest at these levels, suggesting increased demand at the lower end of the range. If TAO begins consolidating above the current confluence zone and forms a bullish market structure, the probability of a full range rotation to the top of the range increases significantly.

Upcoming Price Action: What to Watch

TAO is at a pivotal moment in its price action. The confirmation of a higher low at the current confluence zone will be crucial for further bullish momentum. A successful retest of this level could trigger a powerful continuation move, offering one of the clearest opportunities for a potential 200% rally in the current market environment.

For those monitoring TAO, it’s essential to watch for:

  • Confirmation of a higher low at the confluence zone.
  • Increased trading volume to support a bullish breakout.
  • Strong price action consolidating above the current technical levels.

With these factors aligning, TAO could find itself poised for a significant recovery, offering a compelling opportunity for investors and traders alike.

Post Views: 0