Bittensor (TAO) loses strength: Crypto analysis of April 4, 2024

After months of spectacular growth, Bittensor is experiencing, for the second consecutive week, an unexpected drop in its price. Let’s take a look at the future prospects of the TAO price together.

Bittensor Location (TAO)

In less than two months, Bittensor saw a spectacular rise of over 700%, from $46 to $394. This remarkable increase can be attributed, in part, to the general enthusiasm for the artificial intelligence sector. Furthermore, this increase in its value strengthened its popularity, allowing Bittensor to rely on support at $213 to reach a new all-time high at $757.

After reaching this latest high, Bittensor’s price underwent a correction approaching 40%, taking its price below the $525 support. This decline has legitimately worried the most recent investors. However, it should be noted that the first days of April marked a favorable rebound for the price of the cryptocurrency. Indeed, a renewed interest from buyers was noted when the price reached $470. As a result, the TAO managed to rise above the psychological threshold of $500 to subsequently re-enter its last support.

At the time of writing, Bittensor stock is trading around $570. Although this rise may seem encouraging, the short-term structure of the cryptocurrency nevertheless remains bearish. This decline pushed the TAO below its 50-day moving average. Although it remains on an upward trend, this has raised questions about the strength of the medium and long-term trend of the cryptocurrency. Obviously, the dynamics of the TAO have undergone a downward adjustment, as demonstrated by both the oscillators and the price of the cryptocurrency itself. Each of these elements appears to support a pessimistic view for Bittensor’s price future. However, given its leading position in the sector, this situation could represent an opportunity for contrarian investors.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (TAO/USDT)

Open interest on TAO/USDT perpetual contracts has diverged significantly from its price. While the latter fell by around 35%, open interest on TAO/USDT perpetual contracts almost doubled, increasing by $16 million in positions. This dynamic indicates that the recent decline in the cryptocurrency has sparked increased interest in the derivatives market. It is plausible that this reflects an increase in short positions, potentially amplifying existing downward pressure. However, the majority presence of liquidations of long positions during this decline, associated with a slightly increasing funding rate, paradoxically suggests that some speculators perceive this decline as a buying opportunity, anticipating a trend reversal in the medium or long term.

Bittensor’s liquidation heatmap over the past month shows that TAO recently passed a significant liquidation zone, with a price range between $510 and $560. The fact that TAO has regained ground above this threshold suggests renewed buyer interest at this price level. Currently, the most significant liquidation zone above the current price is between $615 and higher, around $760. Below the current price, liquidation zones are visible near $460, and even lower, above $400. If the price approaches these levels, it could trigger massive order volume, increasing the possibility of a period of heightened volatility for Bittensor. These areas therefore represent major points of interest for investors.

Assumptions for the price of Bittensor (TAO)

• If the price of Bittensor remains above $470, we could anticipate a continuation of the uptrend up to $645. If the latter is crossed, the next bullish objective could be the threshold of $700 or its all-time high of $760. At this point, that would represent an increase of more than 26%.

• If Bittensor price fails to hold above $470, we could see a pullback more or less around $415. If the bearish movement continues, the next support level to consider would be around $350. At this level, the drop would represent approximately -41%.

Conclusion

Bittensor has enjoyed an exceptional rise, spurred in part by the craze for artificial intelligence. However, after reaching an all-time high of $757, a decline reduced its value below the $525 threshold, raising concerns among investors. Despite the recent decline, Bittensor’s rebound above $500, coupled with its leadership position, could interest investors looking for opportunities. However, it is essential to closely monitor the price reaction to key levels to confirm or refute current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.

Family Trading

Family Trading is a community of own-account traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.

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