Alternative asset management firm Valkyrie Investments is monitoring a "head and shoulders" bearish reversal pattern on Bitcoin's daily chart. The pattern consists of two rallies flanking a bigger one, representing the head, and is seen as a sign of a forthcoming bearish shift in the market trend. Valkyrie's analysts say that if prices drop below the trendline connecting the first and second troughs, traders may take bearish positions. A close under the neckline support at around $27,300 would confirm a H&S breakdown, opening the doors for a deeper decline. However, macroeconomic developments can make or break trends and invalidate patterns, and bitcoin may rally, invalidating the H&S, if Friday's US nonfarm payrolls data signal labor market weakness.
(By Omkar Godbole)
All Comments