Frank Cappelleri, founder of CappThesis, gave a prominent evaluation of Bitcoin (BTC) technical outlook.
According to Cappelleri, Bitcoin has been in the process of forming a reverse head and shoulder pattern in recent weeks, and this structure shows a strong uptrend potential.
Cappelleri said that all asset classes will be affected once the Fed begins its interest rate reduction process, arguing that this is particularly important for Bitcoin. Experts say, “Bitcoin has shown a strong positive correlation with the S&P 500 in recent years. It doesn’t always move in the same direction, but it’s rare to diverge over time. Sometimes the lead of Bitcoin, the S&P 500.”
Regarding 2025, Capelli said Bitcoin fell after peaking in January, the S&P 500’s major signal. Analysts said both assets bottomed out in April, saying that while Bitcoin has recently retreated from its August peak, the S&P 500’s continued strength is well known.
According to Cappelleri, Bitcoin’s price action over the past four weeks has formed a reverse head and shoulder pattern of less than $117,000. The classic target for this formation is $127,600, but if momentum rises, a higher target of $142,000 could be placed on the card.
Cappelleri pointed out that Bitcoin has recovered by testing twice from this critical territory in recent weeks, recalling that a similar breakout caused a strong bullish wave last November. He also claimed that Bitcoin had a strong historical performance in the final quarter of this year.
Analysts pointed out that the short-term downward channels within the long-term uptrend are mostly positive signals, but he noted that the last two breakouts were unable to generate strong momentum. Cappelleri said that weekly RSI indicators should approach 80 levels, similar to those seen in 2023 and 2024, adding that when this happens, “the door can be opened for a much larger rise.”
“Bitcoin continues to play an important role in shaping global risk appetite, and that direction will continue to be important for both the US and the global stock market,” Capelelli said.
*This is not investment advice.
