Bittensor [TAO] Drops 23% in April, Faces Further Losses

Bittensor [TAO] crypto has experienced notable price volatility, with a significant drop below the $216 level on April 6th, reaching a low of $167 on April 7th. Following this decline, TAO bounced back nearly 30% to retest the $216 level, which has been a crucial horizontal support over the past month. The 1-day chart of Bittensor indicates a downtrend that has been in effect since the final week of January, when the $416 level, the previous swing low, was breached. Subsequently, the $434-$450 region shifted from support to resistance by the end of February.

Over the past six weeks, the On-Balance Volume (OBV) has been in a steady decline as TAO prices dropped from $470 to $180. Recently, the $216 level has also transitioned from support to resistance, suggesting further potential losses and a possible price move toward $140-$150 in April. Despite these bearish indicators, the Chaikin Money Flow (CMF) has surged significantly, reaching +0.05, which some analysts interpret as a sign of substantial capital inflows. This discrepancy between the CMF and other technical indicators suggests that bulls may currently have the upper hand.

However, the overall market structure and momentum remain bearish. TAO is trading below its 20-day moving average, and the Bollinger Bands indicate rising volatility, suggesting potential further losses as the price gravitates toward the lower band. Traders are advised to position themselves cautiously, as the 1-month liquidation heatmap shows notable liquidity clusters at $240 and $220. These levels are short-term price targets, acting as magnetic zones close to the current price. The 1-week liquidation heatmap highlights the $220 level more sharply, indicating a high likelihood that TAO prices will drift higher to sweep this area. Once this occurs, a bearish reversal becomes a feasible possibility.

If TAO climbs above $240, traders should be even more cautious, as this could make a $280-$300 price bounce likely. Until $240 is flipped to support in the short term, traders can remain bearishly biased. According to the analyst's forecast, TAO has the potential to bounce to $240, but it is unlikely to go any higher. The CMF disagreed with the other technical indicators and suggested bulls have the upper hand now.