$TAO remains firmly positioned in a broader bullish trend, but recent price action suggests the market is taking a breather after an aggressive upside move. Following a strong rally that pushed indicators into overbought territory, the current pullback appears more like consolidation than reversal.

Market Sentiment: Cautiously Bullish

The overall bias stays bullish, but patience is key here. Chasing price at highs carries risk, so the smarter play is to wait for a dip before entering long positions. For aggressive traders, short-term scalp shorts are possible—but they come with elevated risk and demand strict risk management.

Volume Analysis: A Temporary Exhaustion Signal

During the last impulsive move upward, volume spiked aggressively, with peaks exceeding 58K, confirming strong buyer conviction. However, recent hourly candles show very low volume, signaling that buyers may be temporarily exhausted at current levels. This low participation is a yellow flag and often precedes a pullback or sideways consolidation.

Flow & Liquidity Insights

Bullish confirmation:

1H contract inflows: +1.08M

24H & 3D flows: Strongly positive

Spot flows: Green across the board, reinforcing long-term strength

Short-term caution:

5m & 15m timeframes show outflows

12H contracts at -2M, suggesting profit-taking pressure

Overall, flows favor bulls, but shorter timeframes reflect cooling momentum.

Long Trade Strategy (Preferred Setup)

The ideal long entry lies near strong confluence support:

Buy Zone:

📍 244.21 – 244.87

(MA20, Bollinger mid-band, and structural support)

Confirmation Needed:

Bullish reversal candle (Hammer / Bullish Engulfing)

Volume expansion on the bounce

Stop-Loss:

❌ 237.50 (if entering around 244.80)

Targets:

🎯 251.78 (previous high retest)

🎯 256.10 (bullish continuation)

Short Scalp Strategy (High Risk ⚠️)

With overbought conditions, low volume, and slightly negative funding, a quick scalp short is possible if price rejects resistance.

Short Entry Areas:

Rejection near 250.63 (Upper Bollinger Band)

Strong resistance at 252.65

Stop-Loss:

❌ Tight stop 1–2% above entry

(e.g., above 252 for a 249 entry)

Target:

🎯 244.21 (MA20 / mid-band support)

Final Verdict

$TAO’s macro structure remains bullish, supported by strong inflows and healthy spot demand. The current pullback is likely a reset rather than a trend change. Smart traders wait for confirmation at support, while scalpers must stay disciplined due to mixed short-term signals.

Trend: Bullish

Bias: Buy th:oderate (higher for shorts)#TrendingTopic #BTC90kChristmas #TAO