Bittensor Breaks Out of Mid-March Flag, But Bulls Need to Watch Their Back

Bittensor (TAO) has broken its mid-March flag pattern, and this is good news for bulls. The token's price action was constrained by this pattern since March, but it finally broke out, giving buyers control over the short-term trend.

This breakout was supported by three consecutive days of gains, which shows that momentum is on the side of the bulls. According to TradingView, TAO traded above its major EMAs, and this indicates improving technical momentum.

The derivatives market also became more active during the rally, with Open Interest increasing over the past 24 hours. This suggests that traders added exposure as the token moved higher, which could strengthen the continuation setup.

However, there are some risks to consider. The long positions accounted for approximately 69% of total market exposure, which creates a fragile structure. If the price were to drop sharply, this could lead to liquidation risks.