Bittensor (TAO) surges 8% in a day, 28% in a week, as bullish trend continues

Bittensor (TAO) has shown significant price strength, gaining 8% in a single day and 28% over the past week. This rally is part of a broader bullish trend in the cryptocurrency market, with Bitcoin (BTC) reaching a new all-time high of $122,000 and Ethereum (ETH) posting an 18% weekly gain. The price movement of TAO is not only driven by market sentiment but also by a technically significant harmonic pattern emerging on its chart.

A detailed analysis of TAO’s daily chart reveals the formation of a classic Bearish Butterfly harmonic pattern. This pattern is widely recognized by traders and often precedes major trend shifts once the final “D” point is reached. The pattern began forming from point X near $588.58, followed by a drop to point A, a recovery to point B, and another corrective dip to point C around $287.74. Since forming that low, TAO has reversed course and is now trading near $421, reclaiming critical ground and showing bullish structure.

The harmonic setup suggests that if the CD wave continues, the Potential Reversal Zone (PRZ) lies between $702.99 (1.272 Fibonacci extension) and $848.54 (1.618 Fib extension). These levels are often where the Butterfly pattern completes its cycle, potentially triggering consolidation or profit-taking after the rally. If Bittensor maintains this bullish momentum with increasing volume, traders could see a potential move of over 66% toward the $702.99 target, where point D is projected to form. That zone also marks a likely resistance, which could serve as a critical decision point for bulls.

However, staying above the 200-day moving average, currently around $361, will be key to keeping this bullish pattern intact. A failure to hold that level may weaken the setup and invite short-term correction. Despite this potential risk, the structure is clear, and with broader market sentiment strongly in favor of bulls, TAO could be gearing up for its next major breakout.