Bittensor [TAO] continued its stellar performance on Thursday and Friday, 19-20 March. In those two days, it registered a 28% move from the low at $242.7 to the high at $310.6.
The AI sector was an outstanding performer during the previous week. However, the sector was unable to maintain its upward momentum this week. At the same time, TAO token’s prices challenged the 1-day timeframe’s swing high at $302.4, made in January.
The bulls were unable to overcome this resistance, but their fight to drive prices higher on Thursday and Friday showed intent. It also marked a lower timeframe bullish continuation.
The long-term holder conviction in Bitcoin [BTC] was growing too as the leading crypto held on to the psychological $70k-level. This could aid TAO buyers in the short-term. Will it also allow the longer-term bear structure to be overcome?
Pitched battle at TAO’s January swing high
The relative strength of the AI sector has slowed down. As the biggest AI crypto asset, TAO’s momentum has an impact on the sector. The altcoin ran into a long-term resistance level at $302. The subsequent dip to $242 was quickly bought up.
At the time of writing, the RSI was in the overbought territory and indicated an overextended market. Moreover, the price has been unable to close a daily trading session above $302 to signify a swing structure shift.
Interestingly, the daily trading volume has been rising over the past week. This represented an intense battle between bulls and bears at the $300-area. It is unclear who the winner will be, but Bitcoin’s next move will have a big influence on the outcome.
Bullish short-term structure was weakened by volume divergence
On the 4-hour chart, the structure seemed bullish. The move beyond $300.7 (white) represented a bullish structure break after the retracement to $242.7. At the time of writing, the price had found support at the moving averages, and the RSI was also above the neutral 50-level.
And yet, the OBV made a lower high over the past few days, even as the price pushed higher. This bearish divergence indicated a lack of buying pressure as TAO attempted to breach the $300-resistance.
Traders need to wait and watch Bitcoin’s moves over the weekend to understand where Bittensor token’s prices can go next. Neither buyers nor sellers have a clear advantage right now.
Final Summary
- Bittensor challenged the $300-psychological level yet again after a brief retracement to $242.
- Traders should not rush to enter positions, and patience for a day or two can yield more clarity.
