CappThesis founder Frank Cappelleri made remarkable assessments regarding the technical outlook of Bitcoin (BTC). According to Cappelleri, Bitcoin has been in the process of forming an inverse head-and-shoulders pattern in recent weeks, and this structure points to the possibility of a strong uptrend. Cappelleri stated that all asset classes will be affected when the Fed initiates a rate cut process, arguing that this is particularly critical for Bitcoin. The expert said, “Bitcoin has exhibited a strong positive correlation with the S&P 500 in recent years. While it doesn't always move in the same direction, prolonged divergences are rare. Sometimes Bitcoin leads, sometimes the S&P 500.” Regarding 2025, Cappelleri stated that Bitcoin fell after peaking in January, a leading signal for the S&P 500. The analyst noted that both assets bottomed in April, and noted that while Bitcoin has recently retreated from its August peak, the S&P 500's continued strength is noteworthy. According to Cappelleri, Bitcoin's price action over the past four weeks has formed an inverse head-and-shoulders pattern just below $117,000. The classic target for this formation is $127,600, but if momentum picks up, a higher target of $142,000 could be on the cards. Related News: Vitalik Buterin Reveals Ethereum's (ETH) Future Plans - Here's What's Planned Cappelleri noted that Bitcoin has tested and recovered from this critical area twice in recent weeks, recalling that a similar breakout triggered a strong bullish wave in November last year. He also argued that Bitcoin has historically performed stronger in the final quarter of the year. While the analyst noted that short-term downward channels within a long-term uptrend are mostly positive signals, he noted that the last two breakouts failed to generate strong momentum. Cappelleri stated that the weekly RSI indicator should approach the 80 level, similar to the levels seen in 2023 and 2024, adding that if this happens, “the door could open for a much larger rise.” “Bitcoin continues to play a significant role in shaping global risk appetite. Its direction will remain critical for both US and global stock markets,” Cappelleri said. *This is not investment advice. Continue Reading: Investment Firm Founder Says, “Bitcoin is Forming an Inverse Head and Shoulder Pattern,” Here’s What It Means
