Bittensor Faces Bearish Pressure Amid Market Volatility

Monday, March 10, 2025 12:00 AM
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Bittensor Faces Bearish Pressure Amid Market Volatility cover

Bittensor (TAO) has recently experienced significant losses, driven by a prevailing bearish sentiment in the cryptocurrency market. The price has dropped below the crucial support level of $434, which was breached in early 2025. The psychological barrier at $500 has been tested multiple times but has consistently resulted in rejections, with the most recent failure occurring on February 21. Since that date, TAO has lost 46% of its value, with the looming support level from July 2024 at $216 appearing increasingly vulnerable as bullish momentum seems to be waning.

From a technical analysis perspective, Bittensor remains entrenched in a bearish trend, characterized by a series of lower lows without any new higher highs. The Awesome Oscillator indicates a strong bearish dominance, while the Chaikin Money Flow (CMF) has struggled to rise above +0.05, only achieving this once in late February. The moving averages further reinforce the bearish outlook, with nearby resistance levels identified at $320 and $360.5. The 1-month liquidation heatmap suggests that the closest liquidity pockets are at $296 and $314, indicating that any potential price bounce may face significant challenges.

Despite the bearish indicators, there is a possibility of a short-term price bounce, particularly if liquidity around $250 is swept. The 1-week chart highlights the $250-$260 range as a critical zone that may be tested soon. The performance of Bitcoin (BTC) will play a pivotal role in determining Bittensor’s trajectory; a continued decline in BTC could push TAO below $250, while a reversal could present buying opportunities. Traders are advised to look for signs of reversal on lower timeframes, such as an uptick in volume or a Doji candlestick, to gauge potential entry points for long positions.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

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