Date: Mon, June 09, 2025 | 09:46 AM GMT
The cryptocurrency market is moving through a volatile consolidation phase, and Ethereum’s recent range-bound action between $2,700 and $2,400 since May 13 is reflecting across altcoins. Among the tokens feeling the ripple effect is Bittensor (TAO), which saw a 11% decline over the past month.
However, today’s 5% bounce is drawing fresh attention—and the chart is flashing a potentially bullish setup.
Power of 3 Pattern in Play
On the 4-hour chart, TAO appears to be forming the widely recognized “Power of 3” pattern—a structure made up of three phases commonly used by smart money traders: accumulation, manipulation, and expansion.
Accumulation Phase: Between May 08 and June 03, TAO traded in a tight sideways channel ranging from $394 to $478. This type of low-volatility price action is typical of the accumulation phase, where larger players accumulate positions without attracting much attention.
Manipulation Phase: On June 3, TAO broke below the accumulation zone and dipped sharply to $347. This move likely triggered stop-loss orders and created panic among retail holders—classic signs of a manipulation phase where weaker hands are flushed out.
Expansion Phase: Following the fake-out, TAO sharply rebounded and has now entered the expansion phase, reclaiming the $394 level and pushing towards the key $478 resistance — which previously acted as the lower boundary of the Accumulation Phase.
What’s Next for TAO?
If TAO maintains support at $394 and manages to flip the $478 resistance, it would mark the confirmation of the expansion phase of the Power of 3 structure. A successful breakout above this zone could open the door for a larger upside move.
According to the technical projection from the Power of 3 pattern, the next major target lies at $609—offering a potential 53% gain from the breakout point. If momentum continues and market conditions improve, TAO might be gearing up for a powerful rally in the sessions ahead.
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