Analyst Jason Pizzino notes a “pretty good signal” pointing to a significant rise in the Bitcoin price.

Cryptocurrency analyst and trader Jason Pizzino believes Bitcoin (BTC) is sending a bullish signal as its price is about 5% below its all-time high.

Pizzino tells his 358,000 YouTube subscribers that Bitcoin is forming a bearish “double top” signal on the daily time frame, but could turn truly bullish if BTC breaks out higher.

A double top is a bearish reversal pattern that forms when the price reaches a peak and then reverses downward. The price then rises again but fails to surpass the previous peak, forming an M-shaped pattern, also known as a “double top.”

“…a breakout of a double top is a pretty good signal in itself. It means a move lower is about to happen, so if that doesn't happen and we see a breakout higher and several closes above that level, that in itself is a signal that the bears are losing ground and the bulls are about to take control… …I think a significant rally is in the works, even if we see a pullback.”

According to Pizzino, Bitcoin could fall by several percentage points without changing the current bullish market structure.

“Looking at these pullbacks, you can see that the support level is still around $112,000—the previous low. The swing low is around $113,000–$112,000. So, in the $112,000 to $114,000 range, any pullback to this level is still bullish in the short term.”

At the time of writing, Bitcoin is trading at $117,197.

According to Pizzino, to achieve its growth targets, Bitcoin needs to overcome the resistance level that has been in place for almost a month.

“$120,000 was the key level we were watching… because that would have allowed us to exceed the interest rate that was announced on August 22… and you can see that prices have not reached that high.”

Source: cryptonews.net