Bittensor is falling today: what traders are watching

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Bittensor Drops 10.31% to $236.50 Today

Highlights

Bittensor completed its first token halving on December 15, reducing daily issuance of TAO from 7,200 to 3,600 and increasing supply scarcity.
Bittensor's market capitalization has risen above $2.7 billion following the reduction in token issuance and network developments.
The project launched a new hardware-focused subnet designed to support decentralized AI innovation alongside the recent halving event.

Token scarcity rises as halving contrasts with capital growth

Bittensor completed its first token supply halving on December 15, reducing daily issuance from 7,200 to 3,600 TAO. This milestone introduces greater scarcity into the network’s supply dynamics. Market capitalization now stands above $2.7 billion, while the project also launched a new hardware-focused subnet to support decentralized AI innovation.

Anton Kharitonov, expert at Traders Union, notes that Bittensor remains under pressure on all major moving averages and just posted a sharp 10.31% decline. He highlights weak momentum indicators and persistent seller control, with volatility underscoring trader anxiety. Recent news about the token halving and a new subnet have failed to trigger any renewed buying appetite. The analyst expresses skepticism about upside in the near term and believes supply reductions are being ignored amid heavy liquidation. "There is little evidence of accumulation at these levels, and further weakness below $236.50 would likely accelerate losses," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, sees long-term opportunity in Bittensor’s evolving fundamentals. He emphasizes that the supply halving marks a pivotal moment for TAO, driving scarcity while market capitalization holds above $2.7 billion. Karapetjanc believes the ongoing buildout of decentralized AI infrastructure will support future institutional interest. "With scarcity now embedded and robust innovation, the bullish structure remains intact for forward-looking investors," says Karapetjanc.

Jainam Mehta, market strategist, observes that Bittensor is deeply oversold as technical signals hit extremes. He notes that downside risk persists but spots a tactical window for contrarian entries if momentum starts to diverge. Mehta sees stabilization near $236.50 as crucial, with clear invalidation if support breaks. "Watch for a sharp relief rally if buyers show up near oversold bands, but keep stops tight given fragile sentiment," says Mehta.

Weak momentum deepens as indicators flag entrenched oversold state

Momentum studies reinforce the bearish tone, with a weak MACD and low ADX confirming subdued directional strength. RSI, Stoch RSI, CCI, and BBP all point to deep oversold territory, signaling that sellers continue to dominate intraday action. The awesome oscillator supports this negative bias.

Previously it was reported that Bittensor was trading well below all major moving averages, with technical indicators such as MACD, ADX, and RSI confirming sustained downside momentum and oversold conditions. Analysts noted the closest resistance was at the Ichimoku Kijun level, while further declines were expected unless a decisive reversal occurred above $270.00.

Source of Data: TAO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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