Frank Cappelleri, founder and president of CappThesis, an independent research firm, recently discussed the potential approval of Bitcoin Spot ETFs and the current state of Bitcoin (BTC). Cappelleri said that the Bitcoin chart is showing signs of restarting its long-term trend towards $66,000.
According to the analyst, Bitcoin has seen significant growth in 2023, and the possibility of a full-fledged ETF finally being approved by the SEC is on the horizon. Experts are divided on the potential impact of this approval. Some are predicting a “sell the news event,” while others are expecting an even bigger rally.
Cappelleri emphasized the importance of understanding BTC's price movement over the past few weeks and months. “If the largest cryptocurrency is going to continue moving forward, here's what needs to happen next,” the analyst explained.
Bitcoin bottomed in September 2023 and broke out of a two-month bullish pattern in October, settling in the mid-$30,000s for several weeks. The 14-Day Relative Strength Indicator (RSI), which measures momentum, has almost reached 90 (70 is considered overbought). According to the analyst, additional breakouts and overbought values have been seen in the last five months. However, periods of consolidation between these spikes set the stage for additional breakouts. The RSI continued to oscillate between the midpoint (near 50) and the 70 level, which is indicative of an uptrend.
According to the analyst, the upward movement in October 2023 completed a 17-month bottom formation, for the next target, the analyst said:
“Formation targets can be structured using a measured movement strategy. For Bitcoin, this strategy suggests a target around $66,500, in line with former all-time highs.”
According to the analyst, this goal does not need to be achieved immediately. Some support and padding anywhere above the snatch area can help digest some of this already powerful movement.
*This is not investment advice.
