Bitcoin price started a fresh decline below the $63,500 level. BTC is now consolidating above $60,000 and might face many hurdles on the upside.

• Bitcoin is down over 5% from the $65,000 resistance zone.
• The price is trading below $63,500 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line with resistance at $62,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $60,500 support zone.

Bitcoin Price Takes Hit

Bitcoin price started a fresh decline from the $65,000 resistance. BTC broke the $64,000 and $63,500 support levels to move into a short-term bearish zone.

The price even dipped below $61,500. A low was formed at $60,281 and the price is now consolidating losses. The price is now trading near the 23.6% Fib retracement level of the downward move from the $66,055 swing high to the $60,281 low.

Bitcoin is now trading below $62,500 and the 100 hourly Simple moving average. If there is a fresh increase, the price could face resistance near the $61,650 level. The first key resistance is near the $62,500 level. There is also a connecting bearish trend line with resistance at $62,800 on the hourly chart of the BTC/USD pair.

A clear move above the $62,800 resistance might send the price higher. The next key resistance could be $63,200. It is close to the 50% Fib retracement level of the downward move from the $66,055 swing high to the $60,281 low.

A close above the $63,200 resistance might spark more upsides. In the stated case, the price could rise and test the $64,000 resistance level. Any more gains might send the price toward the $65,000 resistance level.

More Losses In BTC?

If Bitcoin fails to rise above the $62,800 resistance zone, it could continue to move down. Immediate support on the downside is near the $61,000 level.

The first major support is near the $60,500 level. The next support is now near the $60,000 zone. Any more losses might send the price toward the $58,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $60,500, followed by $60,000.

Major Resistance Levels – $61,650, and $62,800.

In September, Bittensor’s (TAO) price surged 111%, rising from $264 to $587. However, as October begins, several indicators suggest that TAO’s price may encounter resistance, potentially limiting further gains.

Popularly called “Uptober,” due to its historically bullish performance, the broader market expected many cryptos to end the month with positive returns. While TAO could do the same, this analysis explains why the altcoin may struggle in the first few days.

Bittensor May Soon Be Overbought

TAO’s impressive performance in September is closely tied to several developments in Artificial Intelligence (AI) sector. This surge in interest has caused significant price swings, as evidenced by the widening of the Bollinger Bands (BB) on the daily chart. 

Bollinger Bands typically expand during periods of high volatility, and TAO’s case is no exception. Furthermore, the indicator also shows if an asset is overbought or oversold. When the upper band of BB touches the price, it is overbought, and when the lower band does, it is oversold.

The chart below shows that TAO’s price at $585.50 is close to tapping the upper band. Considering the momentum around the altcoin, the price might increase to $660. Once it does, it will be overbought, and a pullback could be on the cards.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

From an on-chain perspective, Bittensor’s social dominance is one metric supporting the prediction. Social dominance compares the rate of discussions around a cryptocurrency to other assets in the top 100.

When it increases, it means that the market is paying more attention to the asset, which could help increase demand. A decrease, on the other hand, indicates that most investors are overlooking the assets, which could lead to consolidation or, in a worst-case scenario, drag TAO’s price down.

As of this writing, TAO’s social dominance has fallen, indicating that investors are starting to look in another direction. Should this linger for some days, the altcoin’s price might decrease.

TAO Price Prediction: Token Could Drop to $520

On the daily chart, the Relative Strength Index (RSI), an indicator that measures momentum, shows that TAO is overbought. As seen below, the RSI on the daily chart is above 70.00. This position aligns with the earlier notion that TAO’s price might decrease in the short term.

Using the Fibonacci retracement indicator, BeInCrypto observes that TAO might initially decline to $520.65 (the 78.6% Fibonacci level). If the token fails to hold this level, it could drop further, with the next support region around $445.63.

Read more: Which Are the Best Altcoins To Invest in October 2024?

However, TAO could defy this bias and run toward $700 if demand for the token significantly increases. In that case, the potential drawdown might not last, and October’s performance could get close to a 100% hike.