Date: Thursday, March 20, 2025
The cryptocurrency market is currently showing mixed signals, with Ethereum (ETH) experiencing a 5% weekly gain and trading at $1,950. This marks a positive shift following a turbulent start to March. As sentiment begins to improve, altcoins like Bittensor ($TAO ) are also starting to show signs of recovery.
Bittensor (TAO) has faced significant declines in recent months, but recent weekly gains and ongoing price movements suggest a potential recovery may be underway.
Double Bottom Pattern Signals Potential Reversal
On the weekly chart, TAO has formed a classic double-bottom pattern after enduring a sharp downtrend that began when it failed to break the $743 neckline resistance in early December 2024. Since that failure, TAO has experienced a significant correction, losing 70% of its value and revisiting the key $212 support level—marking the second bottom of the pattern.
Bittensor (TAO) Weekly Chart/Coinsprobe (Source: TradingView)
Following the formation of the double bottom, TAO has successfully held the support level at $212 and is currently bouncing back, reaching $253. This price action suggests the potential for a trend reversal. Additionally, the MACD (Moving Average Convergence Divergence) indicator is signaling a potential bullish crossover, hinting at increasing upward momentum. Historically, double-bottom formations have often resulted in strong reversals.
If this recovery continues, the next significant resistance level for TAO is the 50-period moving average (MA) at $413. A decisive breakout above this level could confirm the uptrend, potentially leading to an attempt to reclaim the $743 neckline resistance in the near future.
Conclusion
While the broader cryptocurrency market remains volatile, the technical setup for Bittensor (TAO) looks promising for a potential bullish breakout. However, failure to maintain the $212 support level could invalidate the double-bottom formation, potentially leading to further downside. Traders should closely monitor for a decisive move above key resistance levels to confirm a trend reversal.
