Market Overview for Bittensor/Bitcoin (TAOBTC) - 2025-10-08

• Price declined by 6.1% over 24 hours, with bearish momentum intensifying after 05:00 ET.
• Volume surged post-14:00 ET, confirming a short-term bearish breakout below 0.002720.
• A key support level appears to form around 0.002700–0.002710, now under pressure.
• RSI entered oversold territory, suggesting a potential rebound could be near-term.
• Volatility spiked after 15:00 ET, with large candles indicating possible exhaustion in the short-term trend.

Bittensor/Bitcoin (TAOBTC) opened at 0.002762 on 2025-10-07 12:00 ET, peaked at 0.002785, and closed at 0.002719 on 2025-10-08 12:00 ET, marking a 6.1% decline. The 24-hour volume totaled 901.23 BTC with a notional turnover of approximately $2.46 million.

Structure and price action over the past day show a clear bearish bias, with price breaking below a key psychological level of 0.002730. Key support levels at 0.002720, 0.002710, and 0.002700 have seen increased volume and are likely to see further testing. A notable bearish engulfing pattern emerged around 14:45–15:00 ET, confirming a shift in sentiment.

The 20-period and 50-period moving averages on the 15-minute chart have both turned downward, reinforcing the bearish trend. Price remains below the 50-period MA, indicating bearish momentum is intact. On the daily scale, the 50, 100, and 200-period moving averages appear to be diverging, with the 50 MA pulling away from the longer-term averages, a potential sign of weakening bullish structure.

MACD has turned negative with a bearish crossover and is maintaining a bearish bias. The histogram is expanding, signaling increasing bearish momentum. RSI is in oversold territory, dipping below 30 after 09:00 ET, which may indicate a short-term bounce is possible, although the broader trend remains bearish.

Volatility, as measured by Bollinger Bands, began to expand after 15:00 ET, as price broke below the lower band. Price is now sitting comfortably within the bands, but the narrowing of the bands earlier in the session may have foreshadowed the recent decline. The current band structure suggests a potential for consolidation or a rebound from support around 0.002710–0.002720.

Volume spiked post-14:00 ET, coinciding with the breakdown, indicating strong conviction behind the bearish move. Notional turnover also increased sharply during that window, suggesting large institutional or automated trading activity. No major divergence between price and volume is observed, meaning the bearish move is well-supported.

Fibonacci retracement levels applied to the 0.002762 to 0.002719 move show a potential bounce could occur around the 38.2% retracement level at 0.002746 or the 61.8% at 0.002734. However, with current momentum and price below 0.002720, these levels may act as dynamic resistance. A break below 0.002700 could see further extension toward 0.002680 on a 1.618% extension.

Backtest Hypothesis
A potential short-term trading strategy could involve entering a short position on a break below the 0.002720 support level, confirmed by a bearish engulfing candle and a close below the 50-period moving average on the 15-minute chart. A stop-loss could be placed just above the 0.002730 level to account for possible rebounds. A take-profit target could be set at the 0.002700 support level, with an additional target at 0.002680 if the break is strong. The RSI entering oversold territory suggests a potential bounce, but as long as the trend remains intact, the short bias is justified. This strategy assumes a low-volatility continuation and is best suited for traders with a short-term horizon and a clear risk management framework.