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Can the bullish breakout from a rounding bottom and a rising channel propel BitTensor (TAO) past $700?
With the crypto market on a fresh recovery run, AI tokens are leading the bullish pack. Among the top AI-performing tokens, BitTensor has surged 10% in the past 24 hours.
Crossing above the $4.5 billion market cap, the AI token is sustaining dominance above the $625. Will this recovery rally in BitTensor result in a price surge beyond the $700 barrier?
BitTensor Price Analysis
In the 4-hour chart, BitTensor showcases a rising channel breakout rally. With the broader market recovery, BitTensor’s price started the second bullish reversal in November.
Starting from the crucial support level of $450, the uptrend has reached a peak of $625, accounting for a price surge of nearly 38%. Over the last four days, this bullish trend has surpassed the local resistance trendline and the 78.60% Fibonacci level at $618.
The bullish breakout increases the chances of a prolonged rally, surpassing the immediate resistance of $673.
The streak of bullish candles marks a breakout of multiple resistances, and the underlying sentiments have significantly improved. Hence, the broader market anticipates the bullish continuation of the TAO token.
Supporting the broader market sentiment, the 50-100-200 EMA lines on the 4-hour chart have regained their bullish alignment following the recent upward surge. Additionally, the MACD and Signal lines have diverged after previously merging, signaling potential for further upward movement.
These technical indicators have avoided a bearish crossover and have triggered a buy signal, supported by positive histograms. As such, they suggest the uptrend may continue toward the next immediate resistance level.
Will TAO Price Cross $700?
The BitTensor price trend also displays a rounding bottom breakout, with the neckline of the rounding bottom coinciding with the 78.60% Fibonacci level and a long-standing resistance zone between $618 and $623.
According to the Fibonacci retracement tool, the key resistance levels for BitTensor are at $673 and the 1.272 Fibonacci level at $743.
In the event of a bullish failure, a pullback within the broken resistance trendline could retest local support at $575, followed by the rising support trendline at $560.