TAO Charts Reveal Bullish Setup as Bittensor Prepares for Next Major Move

8 hours ago 16

TLDR:

Bittensor (TAO) forms a 5-wave Elliott pattern followed by an A-B-C correction.
Analysts expect Wave 2 bottom between $235–$265.
RSI divergence and sentiment reset may mark bullish reversal.
Wave 3 projection points to a breakout beyond all-time highs.

Bittensor (TAO) is showing early signs of a strong rebound, according to recent technical insights shared by market analysts.

Despite current market softness, TAO’s price structure indicates a possible end to its correction phase. Analysts are watching closely for a breakout that could mark the start of a powerful upward trend.

A notable example is crypto trader Osemka, who outlined a scenario built on Elliott Wave principles. This scenario hints at upside potential if key confirmation signals appear in the coming days.

TAO’s Clear Wave Structure Signals Completion of Correction

The Bittensor chart shows a full five-wave advance, often labeled a Wave 1 impulse in Elliott Wave Theory. This move pushed TAO near $460 before retracing into a corrective A-B-C pattern. Traders now eye a potential Wave 2 bottom forming around the $235 to $265 range.

Supporting this structure is the Relative Strength Index (RSI), which has trended down sharply since the top. Analysts believe the RSI could signal a reversal near the month’s end or early July.

Osemka suggested that bullish divergence on the daily RSI might align with a final low, reinforcing the bullish setup.

He anticipates a sudden drop driven by market fear before the recovery begins. Osemka described this scenario as a likely “disbelief phase,” which typically defines the end of Wave 2. This phase would shake out weaker positions before price reclaims strength.

Since I really don't know what to write about, I'll expand a bit on the primary scenario for the short term.

I'll talk about while looking at $TAO chart as it's one of the most clear ones.
Presented this view days ago when there were no actual reactions from the HTF support… pic.twitter.com/hfRKYEjvBL

— Osemka (@Osemka8) June 20, 2025

The expected drop is seen as a critical buying zone. This area, if accompanied by bullish divergences, would offer high-reward setups for long positions. Investors will likely watch for RSI and price trendlines to break out upward, signaling the start of Wave 3.

Anticipated Breakout Could Push Bittensor (TAO) Beyond All-Time High

According to the shared analysis, Wave 3 could offer gains over 300% from the local bottom.

Since the first wave rose by 190%, the next leg must outperform to preserve wave structure. In Elliott Wave logic, Wave 4 cannot drop below the top of Wave 1, requiring Wave 3 to extend strongly.

This projection places the next major peak above TAO’s previous high. If the structure holds, a breakout above current levels could mark the beginning of a sustained bullish cycle.

At the time of writing, Bittensor (TAO) trades at $353.63 with a 24-hour decline of 1.14%. Over the past seven days, the asset has dipped by 4.73%. Despite this pullback, TAO remains within its expected range, keeping the bullish thesis intact.

The market now watches closely for final signs of reversal. If confirmed, Bittensor could soon enter its next impulsive phase, positioning it as a strong contender in the ongoing crypto cycle.