Market Overview: Bittensor/Bitcoin (TAOBTC) on 2026-01-18

Summary
• Price declined from 0.002903 to 0.002857, testing a key support level.
• Volume spiked during the breakdown, confirming bearish momentum.
• RSI and MACD both showed bearish divergence, signaling weakening bulls.
• Bollinger Bands contracted prior to the move, suggesting increased volatility.

Bittensor/Bitcoin (TAOBTC) opened at 0.002891 on 2026-01-17 at 12:00 ET and closed at 0.002857 the following day. The pair reached a high of 0.002905 and a low of 0.002855 over the 24-hour period. Total volume was 298.26, with a notional turnover of approximately 0.0854 BTC.

Structure & Formations

Price broke below a key support level near 0.002886 after a failed attempt to retest it multiple times. A series of bearish engulfing patterns and a bearish hammer appeared as the price dropped into the lower Bollinger Band. A key resistance level forms at 0.002903, with a potential support zone forming at 0.002860–0.002855. A 61.8% Fibonacci retracement of the most recent 5-minute rally aligns with the current price level, suggesting a possible consolidation or reversal point.

Moving Averages

On the 5-minute chart, the 20-period and 50-period SMAs both crossed below price, signaling a short-term bearish trend. On the daily chart, the 50-period SMA sits above the 200-period SMA, suggesting a longer-term bullish bias, but the recent price action has weakened this signal.

MACD & RSI

The MACD crossed below the signal line and moved into negative territory, reinforcing the bearish momentum. RSI dipped into oversold territory near 27, indicating potential for a short-term bounce, but the divergence between price and RSI suggests caution. The bears have shown more conviction, especially during the late-night to early morning hours.

Bollinger Bands

Bollinger Bands contracted sharply around 23:00 ET on 2026-01-17 before price broke out downward. The current price is now trading near the lower band, suggesting elevated volatility and potential for a mean reversion. However, the bearish bias remains intact unless a strong bullish reversal pattern emerges.

Volume & Turnover

Volume surged during the key breakdown near 0.002890, with over 12.86 units traded in a single 5-minute candle. This confirmed the bearish move. Notional turnover increased in step with price declines, showing consistent bearish participation. A divergence in volume and price may signal an upcoming short-term reversal, but confirmation is needed.

Bulls may attempt a short-term rally from the 0.002860–0.002855 support zone, but bears appear to control the near-term narrative. Investors should monitor the 0.002860 level for potential rebounds and watch for a failure to retest the key resistance at 0.002903. A sharp move beyond 0.002855 could open the door to a deeper pullback.