Date: Tue, February 4, 2025 | 12:22 AM GMT
The cryptocurrency market is experiencing a strong recovery after an initial sharp sell-off in the past two days. This bounceback is fueled by news that tariffs on Canada and Mexico have been delayed following discussions with President Trump.
In response to this development, Bitcoin (BTC) has recovered to the $99K mark after briefly dipping to $91K, while Ethereum (ETH) has surged back near $2,800 from a low of $2,100.
Among altcoins, AI token Bittensor (TAO) has also staged an impressive 13% recovery, showing signs of a potential reversal after suffering a correction of over 50% in the last 60 days.
Broadening Wedge Setup
On the daily chart, TAO initially saw a massive 200% rally between September and October 2024, surging from $220 to an all-time high of $677 on October 12. Since then, it has been consolidating within a Broadening Wedge pattern, a formation known for breakouts in either direction.
During this phase, TAO has consistently tested both the upper resistance and lower support of the wedge. The recent sharp decline led TAO to retest the lower boundary at $237, a key support level, from which it has strongly rebounded.
Currently, TAO is trading around $370, and if this pattern plays out, it will soon approach its next resistance at the 25-day SMA. A breakout above this level would confirm bullish momentum, potentially leading to a major recovery towards the upper resistance of the wedge near $850.
Is a Recovery Ahead?
While TAO has shown a strong rebound from key support, the next few trading sessions will be crucial in determining whether it can maintain its upward momentum. If buyers continue to step in and push the price above resistance levels, we could see a full recovery in the coming weeks. However, broader market conditions and geopolitical developments, such as today’s press conference by David Sacks, Trump’s Crypto Czar, may influence further price action.
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