Why the Low at $445 Needs to Hold for TAO Crypto to Rally?

A comprehensive Elliott Wave pattern analysis over the 1-hour timeframe, provided critical insights into potential future price movements of Bittensor (TAO) crypto.

The analysis noted that from (A) through (C), was part of a larger corrective pattern suggesting a potential TAO crypto price rebound.

TAO began with a peak at point (1) followed by a complex pattern consisting of multiple smaller waves. It completed a bearish sequence at point (A) and initiated a corrective phase, wave (B), which ended at point B.

The formation of wave (C) appeared to be in its early stages, as sub-waves 1 through 4 and potentially extending to 5 indicated.

TAO’s immediate support level at $445, a potential reversal point that, if held, could propel the price towards a bullish trajectory aiming for targets well above $1,100.

The Fibonacci extension levels at 123.6% at $769.74, 138.0% at $819.60, and up to 200.0% at $1073.92 which around $1100, indicated potential targets.

If the support at $445 held, it could mitigate the risk of further declines and initiate a strong bullish wave (c) as part of the corrective cycle.

However, this upon the strength of the TAO’s reaction to this key zone and the ability of buyers to maintain momentum, as suggested by the recovery from previous day’s lows.

These dynamics will be crucial to confirm the start of wave (c) and the continuation of the upward movement toward the chart’s upper Fibonacci extension levels.

TAO Crypto Price Short-Term Bubble Risk

Bittensor’s short-term bubble risk showed TAO crypto’s fluctuation over time, with significant peaks and troughs that depicted its volatile nature.

The “Business As Usual” reading suggested TAO crypto did not exhibit abnormal speculative behavior that could lead to unsustainable price inflations, commonly seen in bubble scenarios.

Historical data showed periods of high bubble risk coincided with price spikes, followed by corresponding declines, indicative of bubble bursts.

Conversely, current indicators suggested a healthier market environment with less speculative risk, making TAOcomparatively safer for trading. This indicated lower risk for new investments or trades.

TAO Valuation Against BTC

Bittensor’s valuation against Bitcoin suggested another angle not to be overlooked giving the relative strength or weakness of TAO against the leading cryptocurrency.

TAO/BTC ratio began declining in early May ’23, reaching a low in late July 2023 before recovering and peaking in November of the same year.

Since this peak, the valuation again trended downwards, indicating that TAO had been losing value relative to Bitcoin despite the general rally seen in most altcoins against Bitcoin during this period.

TAO’s performance saw a mix of short-term losses and gains: a daily decrease of 3.13%, a weekly decline of 12.4%, and a monthly decrease of 15.83%, contrasted with a three-month gain of 14.54% and a six-month gain of 25.99%.

However, on a yearly and maximum timeframe, TAO showed a decline of 26.3% and a marginal gain of 28.14%, respectively.

Despite medium-term gains, TAO’s overall long-term trend against BTC indicated a broader downtrend, suggesting weaker performance relative to Bitcoin, especially when other altcoins like SUI are showing gains against BTC.

This highlighted potential concerns about TAO’s ability to sustain its relative valuation strength against a backdrop of a potential altcoin sector rally.

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