THELOGICALINDIAN - Thomas Lee the cofounder of Fundstrat Global Advisors has tweeted that the Bitcoin Misery Index BMI is at 89 Developed by Lee as a trading apparatus for investors the accepted BMI amount signifies a blessed affect in the markets However according to Lee BMI measures aloft 67 see a selloff triggering a bead in Bitcoin amount With this in apperception is a amount blast imminent
The Bitcoin Misery Index accomplished 89 on 4/2. Highest account back June 2016. Means acceptable and bad.
Good–> Back 2011, BMI >67 alone apparent during $BTC balderdash markets. More affirmation balderdash starting.
Bad –> BMI >67 afterwards peak, $BTC avalanche ~25% = Profit demography ST.#bitcoinmiseryindex pic.twitter.com/X55q2ypiCA
— Thomas Lee (@fundstrat) April 11, 2019
The BMI is accessible as a paid account through the Fundstrat website. It is a after basis that ranges from 0 to 100 and measures the drive of Bitcoin based on its amount and volatility. An basis amount beneath 27 is advised “miserable” and represents a acceptable affairs opportunity. Whereas a account aloft 67 is “happy” but denotes a advertise signal. Speaking to CNBC in 2018, during the barrage of the BMI, Lee said:
“When the bitcoin ache basis is at ‘misery’ (below 27), bitcoin sees the best 12-month performance. A arresting is generated about every year. [And] back the BMI is at a ‘misery’ level, approaching allotment are actual good.”
He goes on to say that readings over 67 alone appear during balderdash markets. However, back this happens, the amount of Bitcoin usually avalanche by an boilerplate of 25%, as investors attending to booty profits. As things stand, with a accepted account of 89, Lee’s cast would see a abatement in Bitcoin amount to about $3,800, but arresting the alpha of a balderdash market.
While the alpha of April saw a acknowledgment to optimism, according to Lee, that activity may be short-lived. The BMI accepted stands at 89, the third accomplished account back BMI annal began. And the accomplished account in the thirty-four months afterward June 2024’s antecedent aiguille value.
According to Lee, a BMI amount aloft 67 alone happens afore a balderdash run, and, in the short-term, leads to an boilerplate 25% bead in Bitcoin price. Analyzing the antecedent three peaks:
Two of the three BMI peaks about fit Lee’s inferences. But the 13th June 2024 did not see any cogent avalanche or rises.
One affair to note, the BMI is not a amount predictor; instead, it is a admeasurement of bazaar sentiment. And in any case, according to Helfman, Lee’s amount predictions accept rarely materialized. Taking all of this into account, while Lee’s efforts for the crypto-community are awful appreciated, any anticipation should be advised as a achievability rather than a certainty. As such, for now at least, there is no charge for panic.
