Bitcoin found support at $31,107 during the previous session and started gaining ground since then. It is currently up 9.45% from yesterday's closing price and it could gain more ground if it is able to consolidate the resistance breakout at the $38,203 level found in our 23.6% Fibonacci retracement.
The pair found itself entering an oversold status in yesterday's session with a relative strength index at 27%. The markets started reacting to this and drove the price up which allowed the RSI to rise to 34%, meaning that it's very likely that the pair could start its recovery.
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The Bollinger bands are wide and high volatility can be expected. We could find Bitcoin at the $43,312 level in the short term. This level is key as it is located in the second resistance identified at the 38.2% retracement. Once the cryptocurrency makes it to this level it could bounce back down or continue climbing aggressively.
We would have to wait and see how the price behaves in the next few days, if the price is able to break the second resistance it could land in the $45,000 pretty soon but only time will tell.
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