Bitcoin price traded in a tight range around the $37,000 price level throughout the weekend. This tightening of trade suggests that there is currently a lot of fighting between the bulls and the bear as each side tries to gain the upper hand over the other. As this fierce struggle continues, a crypto analyst presented the most important level that will determine whether the bulls or bears will claim dominance.
$31,000 is the magic number for Bitcoin price
Crypto analyst Ben Vouh took to TradingView to share his analysis of Bitcoin’s price position depending on whether the price remains above or below $31,000. According to the analyst, this level is the most important determining factor in whether the Bitcoin price will continue its uptrend or return below $20,000.
The two scenarios presented include whether the Bitcoin the price closes the week above or below $31,000. If Bitcoin closes the week below the $31,000 level, Vouh expects a massive crash. This crash could see the price drop to $18,400, as illustrated by the analyst’s chart.
For the second scenario, if Bitcoin price manages to close the week above $31,000, then the crypto analyst expects the uptrend of recent weeks to continue, placing the high above $31,000. the $42,000 mark. This would result in an additional 20% increase for the value of cryptocurrency.
The crypto analyst highlights the fact that the Bitcoin Fear and Greed Index sits very high. With a score of 72, the crypto market is firmly rooted in greed, which is a sentiment score that has often preceded crypto market crashes. Given this, the analyst advises investors to be cautious during this period. “I would recommend just staying and waiting,” Vouh said.
BTC starts the week on a slow note
With the new trading week opening, Bitcoin price hasn’t exactly started off on the most bullish note. At the time of writing, it is trading below $37,000 and recording losses of 0.46% on the daily chat. This could mean that investors are currently watching what happens next before making their next move.
THE Fear and Greed Index reached its highest level in 2023 so far, scoring 74 on November 6. Even if prices have not started to fall, a crash could be on the horizon, as the analyst points out.
An example of this is on April 16, 2023, when the Fear and Greed Index reached a high of 68. In the coming days, the price would fall around $3,000, from over $30,300 to below 27 $400. The same thing happened on July 12 when the index reached 64. This marked the peak of the recovery and the price of BTC would go from $31,000 to less than $26,000.