Bitcoin price traded within a tight range around the $37,000 price level all weekend. This tight trading indicates that there is a lot of fighting going on between the bulls and bears right now, as each camp tries to gain the upper hand over the other. As this tug-of-war continues, a crypto analyst has presented the key level that will determine whether the bulls or the bears will claim dominance.
$31,000 is the magic number for the Bitcoin price
Crypto analyst Ben Vouh took to TradingView to share their analysis on where the price of Bitcoin will be depending on whether the price stays above or below $31,000. According to the analyst, this level is the main determinant of whether the Bitcoin price will continue its upward trend or fall back below $20,000.
The two scenarios presented include whether the Bitcoin price closes the week above or below $31,000. If Bitcoin were to end the week below the $31,000 level, Vouh expects a massive crash to follow. This crash could send the price down to $18,400, as illustrated in the analyst chart.
For the second scenario, if the Bitcoin price can close the week above $31,000, the crypto analyst expects that the uptrend of the past weeks will continue, bringing the top above $42,000. This would translate into another 20% move for the cryptocurrency’s value.
The crypto analyst emphasizes the fact that the Bitcoin Fear & Greed Index is very high. With a score of 72, the crypto market is firmly in greed, a sentiment score that has often preceded crypto market crashes. Therefore, the analyst advises investors to be cautious during this period. “I would recommend just waiting and waiting,” Vouh said.
BTC starts the week slowly
As the new trading week dawns, Bitcoin price hasn’t exactly started off on the most bullish note. It is trading below $37,000 at the time of writing and posting 0.46% losses on daily chat. This could mean that investors are currently waiting to see what happens next before making their next move.
The Fear & Greed Index has reached its highest level yet in 2023, with a score of 74 on November 6. While prices haven’t started falling yet, a crash could be on the horizon, as the analyst indicates.
An example of this was on April 16, 2023, when the Fear & Greed Index peaked at 68. In the coming days, the price would fall around $3,000, from above $30,300 to below $27,400. The same was the case on July 12 when the index reached 64. This marked the top of the rally and the BTC price would rise from $31,000 to less than $26,000.