Bitcoin $BTC is currently facing significant resistance at $47,000/$47,350. However, when looking at the daily chart (1D), we notice that the Relative Strength Index Indicator (RSI) is at level 70 (overstressed), which suggests the possibility of a small correction towards the $45,000 support. This correction is considered healthy for the market and does not change the upward trend.
On the weekly chart (1W), we also note that the RSI is at a fairly elevated level, but it is important to consider that on previous occasions when the RSI reached these levels, the market continued to gain strength, resulting in a further increase of 42 % before a correction. If this pattern repeats, we could look for values between 60,000 and 62,000 dollars.
However, if the price starts to stabilize in the current range, we should look at the 3-month (3M) chart where we can identify a break-even pattern before the market gains momentum to break historical resistance. In this scenario, Altseason is likely to occur, a period in which altcoins outperform Bitcoin, due to BTC's decreasing dominance.
