False breakout confirmed
At region (a), the excess is relatively small, indicating that seller exhaustion isn't very strong, which led to the current situation at region (b), where the buyers' initial breakout was weak, and sellers responded swiftly. This suggests a false breakout.
It’s best to wait and observe how the price behaves around the POC at 544. If the price holds above the POC and we observe strong bullish patterns, an upward move is possible. However, if it breaks below the POC, further downward movement is likely.
Note: Bitcoin's price has been trending downward over the past few weeks, with a significant long bearish wick recently. Since many coins, including TAO, have a strong correlation with BTC, a move below the POC could signal a potential downside.
It’s best to wait and observe how the price behaves around the POC at 544. If the price holds above the POC and we observe strong bullish patterns, an upward move is possible. However, if it breaks below the POC, further downward movement is likely.
Note: Bitcoin's price has been trending downward over the past few weeks, with a significant long bearish wick recently. Since many coins, including TAO, have a strong correlation with BTC, a move below the POC could signal a potential downside.
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