Thursday , August 11 2022

Tom Lee's Bitcoin misery rate reaches the highest value since 2016 for possible bullish signal


The Wall Street strategist and cofounder of Fundstrat Global Advisors, Thomas Lee, reveal April 11 that its "Bitcoin Misery Index" (BMI) recently reached its highest figure since June 2016. It suggested that the data could be good or bad signal.

The BMI – which Lee designed with the objective of informing investors how the "miserable" Bitcoin (BTC) forks are based on the price and volatility of the currency – supposedly achieved a value of 89 the 2 of April. The Index assigns a value of 100 to positive feeling and 0 to absolute misery.

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Historical BMI chart 2011-2019, with Tom Lee's analysis

Historic table of the BMI 2011-2019, with the analysis of Tom Lee. source: Twitter by Thomas Lee on April 11

According to Lee, the fact that Bitcoin has reported its highest reading since June 2016 provides a mixed signal. He proposed two interpretations of the index, writing that:

"Well -> Since 2011, the BMI> 67 was only seen in the bullish bills of $ BTC. More evidence of rising starts. Bad -> BMI> 67 after the peak, $ BTC falls ~ 25% = gains of ST ".

In an additional tweet in the same thread, the strategist argue that "the main conclusion is that when the BMI arrives 67 it is proof that the bear market for Bitcoin probably ended at USD 3,000."

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As Cointelegraph previously reported, Lee-a well-known bullish Bitcoin-has used BMI as a measure of investor sentiment, as well as to assess the price resistance and immediate prospects of Bitcoin since it released the index for the first time time in March of 2018.

Currently, Bitcoin has risen 0.5 percent on the day and is trading around USD 5.079 at the end of this edition, having reached a maximum of several months in more than USD 5,420 at the beginning of this week, on April 10.

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