A price pattern called "throwback" has emerged on bitcoin's daily chart that could recharge bulls' engines for a rally toward $37,000, according to Valkyrie Investments.
In technical analysis, a throwback is a price drop to a former breakout level or resistance-turned-support.
After a breakout, prices rally for some days before losing upward momentum and returning to the breakout point. More often than not, prices surge after the throwback is completed, as Thomas Bulkowski detailed in his book "Visual Guide to Chart Patterns."
Bitcoin recently fell to around $25,000, revisiting a former inverse head-and-shoulders (H&S) neckline resistance that was breached and flipped into support in March.
The 19% pullback from the mid-April high of $31,000 to a former breakout point is a classic throwback pattern.
