The Bitcoin price has been trading in a tight range around the $37,000 price level through the weekend. This tight trading suggests that there is a lot of fighting going on right now between the bulls and the bears as each camp tries to gain an upper hand over the other. As this tug of war continues, a crypto analyst has presented the most important 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 of 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 most important determinant factor for whether the Bitcoin price will continue its uptrend or crash 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 close the week below the $31,000 level, then Vouh expects a massive crash to follow. This crash could see the price fall to $18,400, as illustrated in the analyst’s chart.
Source: Tradingview.com
For the second scenario, if the Bitcoin price is able to close the week above $31,000, then the crypto analyst expects the uptrend of the last few weeks to continue, putting the top above the $42,000 mark. This would translate to another 20% move for the cryptocurrency’s value.
Source: Tradingview.com
The crypto analyst highlights the fact that the Bitcoin Fear & Greed Index is sitting very high. At a score of 72, the crypto market is firmly in greed, which is a sentiment score that has often preceded crypto market crashes. Given this, the analyst advises investors to be careful during this time. “I would recommend to just hodl and wait,” Vouh said.
BTC Starts Out The Week On A Slow Note
With the new trading week opening up, the Bitcoin price has not exactly started off on the most bullish note. It is trading below $37,000 as of the time of this writing and is seeing 0.46% losses on the daily chat. This could mean that investors are currently watching to see what happens next before making their next move.
The Fear & Greed Index has reached its highest level in 2023 so far, with a score of 74 on November 6. While prices have not begun to tank, there could be a crash on the horizon as the analyst points out.
One example of this was on April 16, 2023, when the Fear & Greed Index reached a peak of 68. In the next few days, the price would fall around $3,000, dropping from above $30,300 to below $27,400. The same was the case on July 12 when the index hit 64. This marked the top of the rally and the BTC price would go from $31,000 to below $26,000.
BTC price performance over the year 2023 | Source: BTCUSD on Tradingview.com