Market Overview for Bittensor/Bitcoin (TAOBTC): Volatility and Oversold Conditions Signal Potential Rebound

Summary
• Price formed a bearish engulfing pattern near 0.003300, followed by a sharp decline to 0.003224.
• Volatility expanded after 18:00 ET, with a 0.93% drop in 90 minutes and increasing turnover.
• RSI hit oversold territory near 0.003224, suggesting potential short-term bounce.
• Bollinger Bands showed compression in the early morning, followed by a sharp break below the lower band.
• Key support appears to be testing at 0.003220–0.003200, with resistance at 0.003265–0.003275.

At 12:00 ET on 2025-12-10, Bittensor/Bitcoin (TAOBTC) opened at 0.003306, hit a high of 0.003326, a low of 0.003194, and closed at 0.003246. Total volume was 678.89 BTC, with a notional turnover of approximately $2,195.

Structure & Formations

The price formed a bearish engulfing pattern at the start of the session, confirming a reversal from a short-term high near 0.003300. A sharp selloff followed, breaking below key support levels and forming a series of lower highs and lower lows. A possible bullish reversal is emerging as the RSI dipped into oversold territory and price tested the 0.003220–0.003200 area, indicating potential for a countertrend bounce.

Momentum and Volatility

The RSI reached oversold levels near 0.003224, suggesting short-term buying interest may emerge. MACD showed a bearish crossover earlier in the session, but momentum has weakened, with divergence between price and momentum lines. Bollinger Bands displayed contraction overnight followed by a sharp expansion, with price breaking below the lower band, signaling increased volatility and bearish bias.

Volume and Turnover

Volume spiked during the mid-session selloff, confirming the bearish breakdown. Turnover increased in line with volume, showing no divergence. A notable cluster of volume occurred near 0.003244–0.003260, indicating a potential area of consolidation ahead.

Fibonacci Retracements

Fibonacci levels on the recent 0.003326–0.003224 move suggest a 38.2% retracement at 0.003265 and a 61.8% at 0.003249, both of which appear to be resistance levels. A break above 0.003265 would signal a test of the 0.003275–0.003280 area, where previous resistance resides.

The next 24 hours may see price testing the 0.003220–0.003200 support and attempting a rebound toward 0.003265. Investors should monitor for bullish divergence in RSI and for volume confirmation on any upmove. A break below 0.003220 could accelerate further downward momentum.