Why is crypto up today? BTC short squeeze, ETF inflows & more
- TAO regained a bullish market structure and could move towards $400 in the coming days
- Liquidity pocket just below $300 may be a short-term price target that TAO could retest
Bittensor [TAO], at the time of writing, had a bullish outlook after climbing past the $270-level. This marked the lower high of the previous downtrend. The breakout beyond this level on Friday represented a bullish market structure break.
In fact, it now appears likely that TAO bulls could keep up the momentum.
Swing traders and investors will be interested in a TAO pullback to this level
Source: TAO/USDT on TradingView
The bullish 1-day structure was accompanied by a rising OBV. The volume metric broke above its highs from March, alongside the price. This was a positive sign and highlighted strong demand behind the altcoin’s April gains.
The Awesome Oscillator also made a bullish crossover a week ago, and its green histogram signified that bullish momentum was snowballing. In January and February, the $320 and $360 levels had served as support, but the steady selling pressure saw them flipped to resistance levels.
At press time, TAO seemed to be challenging the former level as resistance. Even with the rising buying pressure and momentum, the $320 and $360 resistance levels could stall the bullish trends for a few days.
If Bitcoin’s [BTC] momentum could continue bullishly, it is likely that Bittensor would be able to climb beyond $400 and challenge the next significant resistance at $460.
Source: Coinglass
The 3-month liquidation heatmap revealed that a huge cluster of liquidations had formed around the $280-$295 region over the past month. The recent gains saw Bittensor fly past this magnetic zone.
In doing so, it cemented its bullishness and hinted that the next price target was $373. To the south, the same $295-level saw a small cluster of long liquidations build up. Therefore, it may be possible that TAO could pull back to $290-$300, before rallying towards $370.
Traders should be prepared for this scenario. They can look to bid at $290. A more conservative approach would be to wait for a retest of $290 and bounce beyond $300. They can then look for long entries.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
