Bitcoin Price 'Throwback' Suggests Potential for Rally to $37K: Valkyrie Investments
A throwback is a countertrend move where prices reverse direction and move back towards a breakout point, paving the way for a strong rally.
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 (HS) 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, according to Joshua Olszewicz, head of research at Valkyrie Investments.
"Typically, but not always, prices will break above the neckline [resistance] and then return to that level, currently between $24,000 [and] $25,000," Olszewicz said in a . "This behavior is described as a ‘throwback,’ which in this case also includes a nearly three-month bullish reversal falling wedge chart pattern."
"Positive resolution of the throwback measures as potentially a pivot-to-pivot trade setup from $25,000 to $37,000," Olszewicz suggested.
The chart shows bitcoin recently re-testing the green support zone, completing the throwback. Some technical analysis textbooks say throwbacks take ten days at most, although the time limit is often treated as arbitrary.
The throwback has taken the shape of a falling wedge, a pattern characterized by descending converging trendlines. A falling wedge is also a bullish reversal pattern.
The throwback and the wedge will be invalidated if prices drop to the 200-day simple moving average (SMA) at $23,690, per Olszewicz.
"Extended price activity below the 200DMA would suggest a chart pattern failure and further range bound activity between $15,000 to $25,000," Olszewicz noted.
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPBitget VIP Weekly Research Insights
Stablecoins have recently emerged as a key focus for central banks and financial institutions, with the potential to reshape global payment systems and financial infrastructure. According to data from Chainalysis, stablecoins have surged to a monthly trading volume of trillions of dollars, accounting for 60% to 80% of total cryptocurrency trading volume. This explosive growth has attracted significant attention from traditional financial players, who are accelerating their integration into the digital economy by issuing stablecoins, contributing to blockchain network development, and offering related financial services. In the U.S., financial giants such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring the potential of jointly issuing stablecoins. At the same time, regulatory discussions surrounding stablecoins and the proposed GENIUS Act are gaining significant momentum in mainstream media. In the Web2 world, traditional companies like Stripe have entered the space by acquiring Bridge to build out stablecoin payment capabilities. Meanwhile, Circle has emerged as one of the most influential crypto firms in the U.S. stock market, second only to Coinbase, driven by the success of its USDC stablecoin. In the DeFi space, Yield-Bearing Stablecoins (YBS) are drawing substantial capital inflows with their innovative interest-generating mechanisms.
VIPBitget VIP Weekly Research Insights
Real World Assets (RWAs) bring real-world financial instruments such as bonds, real estate, and credit onto the blockchain, enabling tokenization, programmability, and global accessibility of traditional financial assets. With U.S. interest rates peaking, monetary policy turning dovish, and ETFs paving the way for institutional capital to enter the crypto space, RWAs have emerged as a leading theme capturing growing institutional attention.
VIPBitget VIP Weekly Research Insights
The Base chain has recently seen several major strategic developments: Coinbase has integrated DEX routing for Base on its main app, bridging the gap between CeFi and DeFi liquidity; Shopify has partnered with Base to expand real-world applications and user access points. At the same time, Circle and Coinbase stocks have surged by over 700% and 50% respectively, creating a wealth effect that may spill over into the Base ecosystem—boosting both its TVL and token prices. Recommended projects include: 1) AERO (Aerodrome)—The leading DEX on Base, showing strength despite market downturns; well-positioned to benefit from Coinbase integration. 2) BRETT—A flagship memecoin on Base with over 840,000 holders; likely to lead the next Base memecoin rally. 3) New tokens on Bitget Onchain—Offer early access to emerging Base memecoins while helping users avoid high-risk tokens.
Trending news
MoreCrypto prices
More
