Date: Tue, Jan 28, 2025, 03:53 AM GMT
The cryptocurrency market is showing signs of recovery following yesterday’s sharp downturn. Bitcoin (BTC) has rebounded from its 24-hour low of $97,795, currently trading at $102,790. The recent sell-off came amidst a global financial pullback, potentially linked to the launch of China’s Deep Seek AI Model, which has added a layer of uncertainty to the market.
Amid this turbulence, Bittensor (TAO) has also experienced a substantial drop to a 24-hour low of $386. However, the token has quickly regained momentum, climbing 4.50% to its current price of $444.
Source: Coinmarketcap
TAO is now approaching a critical breakout level, signaling a potential continuation of its rally.
Falling Wedge Setup
Bittensor (TAO) experienced a remarkable bullish rally between November and early December 2024, soaring from $405 to a peak of $744—a staggering 84% gain. Since then, the token has entered a consolidation phase within a falling wedge pattern, a classic bullish formation often indicative of an upcoming breakout.
Bittensor (TAO) 1D Chart/Coinsprobe (Source: Tradingview)
After touching the wedge’s lower support at $361, TAO has rebounded strongly, now trading at $444 and testing the 200-day Simple Moving Average (SMA) marked in blue line. This level serves as a significant pivot point, with the token inching closer to the wedge’s upper resistance line.
If TAO manages to break out of the falling wedge pattern, a potential retest of the 200 SMA could provide strong support. The next immediate resistance levels lie at the 50-day SMA and horizontal resistance points of $520 and $585. Successfully clearing these levels could result in gains of up to 32% from the current price.
On the other hand, a failure to break out may lead to continued consolidation within the wedge, delaying any significant price movement.
MACD Analysis
The Moving Average Convergence Divergence (MACD) is currently showing early signs of bullish momentum. A potential crossover of the MACD line above the signal line could confirm the breakout, adding strength to the bullish outlook.
BTC Dominance Impact
Bitcoin dominance, currently trading at 59.08%, has formed a rising wedge pattern on the 4-hour chart—a bearish signal that could lead to a pullback.
BTC Dominance 4H Chart/Coinsprobe (Source: Tradingview)
A decline in BTC dominance could trigger a shift in market focus towards altcoins, providing additional support for TAO’s potential breakout.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before making investment decisions.
