- On March 27, Bittensor (TAO) dropped by over 5%, declining its value from $344 to $322, following the bearish trend in the crypto market
- Despite the drop in the cryptocurrency, a technical analyst suggests a bullish momentum in Bittensor in the long term
- The crypto market has plunged after hopes for Middle East peace talks faded, while oil prices rose again
On March 27, Bittensor (TAO) plunged by over 5%, forcing its value to decline from $344 to $322 amid the bearish momentum in the cryptocurrency market.
According to CoinMarketCap, the cryptocurrency is trading at around $322.20 with a market capitalization of $3.47 billion and daily trading volume at around $603 million.
Bittensor (TAO) Price Chart Forms Head-and-Shoulders Pattern
According to the technical analysis, a bullish pattern is forming for Bittensor, the token known as TAO. According to the analyst, the token is currently confirming a bullish reversal against Bitcoin by breaking above a major level in a pattern called an inverse head-and-shoulders. This pattern has been developing for more than a year, and breaking above it is seen as a major technical event.
The inverse head-and-shoulders pattern is mainly viewed by traders as a sign that a downward trend is beginning. In simple words, the analyst believes that Bittensor is now showing strength against Bitcoin. It means that it is outperforming both Bitcoin and many other altcoins that are not keeping up with the leading cryptocurrency.
(Source: Stéphane)
The analyst mentioned that a small dip in the cryptocurrency price could happen in the short term. However, the future sounds bullish. Because Bittensor is showing this relative strength, the analyst suggests it may be a better choice to buy Bittensor rather than Bitcoin at this stage. This kind of momentum is attracting fresh money into the token as traders look for assets that are performing well.
According to the technical analysis, if Bittensor reaches 0.015284 BTC, the token’s value would surpass $3,000, assuming Bitcoin is trading at $200,000 at that time. However, this level seems very far, and nothing is guaranteed in crypto trading.
The sell-off was supported mainly by profit-taking after a rally. TAO had witnessed a rally of 140% in just 6 weeks. The rally was sparked by growing interest in its decentralized artificial intelligence subnets and a large sum of money moving into AI-based cryptocurrencies. As momentum indicators are showing that the token has become overbought, its excitement has reached high levels across social media. Many traders are booking their profits rather than going for higher prices.
There are many factors behind the drop in cryptocurrency. Bitcoin price dropped below $69K as hopes for Middle East peace talks faded, while oil prices rose again due to fresh supply concerns linked to tensions between Iran and the United States. The overall crypto market lost more than 2% of its total value during the same session, and tokens like TAO, which is expected to rise more sharply than the market, also felt the impact immediately.
As of now, the crypto market is in a consolidation zone, where Bitcoin trades around $66,000 after a recent correction. The cryptocurrency fell to this level after slipping below a major support level at $68,000. The cumulative market capitalization currently revolves around $2.28 trillion.
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