Bitcoin analyst Frank Cappelleri says the OG cryptocurrency’s chart resembles the pattern that preceded a 400% rally last cycle.
According to the founder of CappThesis, the same technical base could support another higher stage.
Chart reflects recovery from 2022 to 2023
Speaking on CNBC, Cappelleri compared Bitcoin’s current structure spans the period 2022 and 2023, when BTC suffered a decline of around 70%.
He pointed to a chart of Bitcoin’s roughly 54% decline during this cycle and placed it next to the 70% decline mentioned above. “That seems like an upward trend to me as well,” he said. This previous slide ended with a significant breakout, and it argued that BTC could move sharply higher once momentum takes over.
“Bitcoin can really rebound,” the analyst said. “That’s a 400% gain.”
However, he was careful not to project the same return this time. “I’m not calling for that,” Cappelleri said, adding that he was instead looking for “a very similar foundation” that could eventually take Bitcoin back to new highs.
Cappelleri also highlighted BTC’s historical response to technical signals, saying, “Bitcoin does really well with the technicals” and arguing that its past price behavior makes these signals difficult to ignore.
BTC was valued at around $84,000 at the time of writing. The cryptocurrency saw an increase of just over 1% in the last 24 hours and remained more or less stable during the week. Additionally, it appreciated about 10% in 14 days and 7% in 30 days, but it is 27% lower than it was at the same time last year. At the same time, the asset’s third-quarter gain was around 42%, its best third quarter since 2017.
Other Market Signals Point to Contested Pattern
As CryptoPotato reported yesterday, the largest Bitcoin holders increased their balances while smaller wallets remained relatively unchanged. According to Santiment, wallets holding between 10 and 10,000 BTC added 41,025 BTC over 10 days, bringing their combined balance to 13.64 million BTC, with such scenarios in the past often leading to stronger market conditions.
BIT Research also argued that the bear market ended after Bitcoin held above $62,900 in late July. His analysis places the True Market Mean, an estimate of the average holder’s cost, at approximately $76,900, eliminating another source of selling pressure. The company presented a bullish scenario of $185,000 to $215,000, while acknowledging that the timing and trajectory remains uncertain.
But other analyzes are less straightforward, like that of Ali Martinez, who noted that BTC fell after each of the four previous US midterm elections, with declines ranging from 27% to 72%, adding another source of uncertainty as November approaches.
The post Bitcoin Chart Echoes Cycle That Generated 400% Gains: Analyst appeared first on CryptoPotato.
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