- Bittensor has seen a 20% increase this month.
- Traders expected a recovery from the $500 zone.
Bit tensor [TAO] has received a lot of attention as one of the top AI coins poised for long-term growth.
Despite a 10% decline in the past week, the token has seen a 20% rise this month, indicating a bullish outlook over longer time frames.
TAO recently broke the inverse head and shoulders pattern and moved past the USD 600 level, but has since entered a consolidation phase.
Leaving the shorts to trigger a bounce
Many traders wrongly believed that this marked the end of the bullish trend, even though no clear structural break had occurred at higher time frames.
This led to a large number of short positions entering the market in anticipation of further price declines. However, the price of TAOs has soared after this pattern, trapping these shorts.
The price has since returned to the breakeven level, which often serves as a psychological zone where trapped traders try to escape. This could lead to a possible rebound as more shorts exit their positions.
Source: Hyblock Capital
At the time of writing, TAO was trading around $560, below this psychological level. A further decline towards the $500 zone could lead to a recovery towards $600 and above, provided market conditions improve.
After a recent correction, TAO appeared to be in vertical accumulation, indicating the possibility of a possible rebound within the 45-minute time frame. The token’s pullback to the $500 range is seen as a short-term buying opportunity.
A strong bullish convergence on the 4-hour chart suggested that a price pump was likely, with a minimum target of $800 in 2025.
Source: TradingView
Traders are cautious, however, as the MACD indicator showed some weakness, meaning that if TAO loses support, prices could briefly fall below $500 again.
TAO is among the top AI projects
Bittensor’s long-term outlook remains positive, but traders should keep a close eye on key levels for potential gains.
Despite the recent pullback, TAO remains one of the top projects in the AI ecosystem, further supporting its bullish potential.
The token is among the top 5 AI and Big Data projects in terms of development, alongside other prominent players such as Near Protocol [NEAR]Oasis [ROSE]and The Graphics [GRT].
Source: Santiment
Read Bittensor’s [TAO] Price forecast 2024–2025
Bittensor’s inclusion in this list highlights its strong position in the market, making it well-positioned to bounce back from the $500 level.
Traders should keep an eye on key price levels and market developments as Bittensor is likely to post further gains in the coming months.
