Cryptocurrency analyst and trader Jason Pizzino says Bitcoin (BTC) is printing a bullish signal as it hovers around 5% below the 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 massively bullish if BTC breaks out to the upside.
A double top pattern is a bearish reversal pattern that forms when the price forms a peak and then turns downwards. Price then rises again but fails to surpass the previous peak, creating an M-like pattern or a double top.
“…a break of a double-top is a pretty good signal in itself. This meaning that it should be a down move, so if that doesn’t happen and we get a break above and some closes above, then that’s a signal in itself to suggest that the bears are losing bad and the bulls are about to take control…. …the significant move to the upside, I think, is brewing even if we were to see a pullback.”
According to Pizzino, Bitcoin could decline by a few percentage points without changing the current bullish market structure.
“Looking at those pullbacks, if it were to happen, there is still a support level of roughly $112,000, the previous low here. The swing low is roughly around $113,000 – $112,000. So between the $112,000 and the $114,000 as a round number, any sort of pullback to that level is still bullish short term.”
Bitcoin is trading at $117,197 at time of writing.
For the upside targets, Pizzino says Bitcoin needs to break above a resistance level that has been in place for nearly a month.
“$120,000 was the key level that we’re watching for… because that would put us above the interest rate announcement of the announcement that was on the 22nd of August… and you can see right now the prices have not gone past that top.”
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