On Friday, 05 June, Bitcoin [BTC] completed the final section of its bearish impulse move of the past three weeks. It fell to a low of $59,130, adding to the widespread panic and realized losses in the crypto market.
On that day, $1.46 billion in long positions were liquidated, putting it among the largest liquidation days of the year.
And yet, Bittensor [TAO] was trading at a key long-term retracement level. If Bitcoin manages to stabilize the downtrend, TAO could offer a buying opportunity.
Buying TAO while the market is in panic
Since early 2025, TAO has traded within a range from $167 to $496. In February 2026, the range low area was defended. The subsequent rally hit the mid-range resistance, but more importantly, shifted the 1-day structure bullishly (green).
Therefore, despite the retracement to $194 in recent weeks, the outlook remained bullish for swing traders. The retest of the 78.6%-level at $194 yielded a reaction in recent days, despite the selling pressure on Bitcoin and the altcoin markets.
Bleak sentiment stands in the way of a TAO resurgence. The crypto AI token needs sustained capital inflows to have a chance at bullish continuation.
The CMF was below -0.05 during the recent retracement and has not climbed back above +0.05 since to show sizeable capital inflows. The OBV also showed aggressive selling and a lack of demand after the retest of the $1940support.
The MFI indicated severe bearish pressure and was dipping into oversold territory, at the time of writing.
Traders’ call to action – Wait
The $225-$245 area saw a cluster of long liquidations build up in intensity since mid-April. Combined with the bearish market conditions over the past month and the magnetic strength of this area, TAO prices plummeted below $250 with hardly any bullish reaction.
The next cluster of liquidity is just below $300, and could help push TAO’s price higher. However, traders should wait for greater capital inflows. A it stands, the volume indicators remain bleak.
A turnaround in demand could see a bullish resurgence.
Final Summary
- TAO’s price action showed that the altcoin was trading at a support level and may be primed for a bullish revival.
- Volume indicators were bearish and the lack of demand will hurt TAO’s bullish hopes.