Thomas Lee widely known as Tom Lee, Co-founder of Fundstrat Global advisors and Wall Street strategist pointed out that the current value reported by his company’s bitcoin [BTC] sentiment indicator Bitcoin Misery Index [BMI] has never been exhibited in a bearish market. He shared this in a recent interview with digital media company Cointelegraph published on April 19.
Lee highlighted that through 2018, the BMI has not been above 50, while it now recently reached a value of 89. According to the reports, the value above 67 has never taken place in a bear market.
Lee concluded saying, “It means that a bull market is likely starting.”
He further explained that when the indicator reported such a high value, “six out of six times, there was a drawdown in the market.” The drawdown averaged to 25 percent in such instances and that in the short term, the market could face an opposition. In addition he also stated that this could also indicate that investors could be investing their capital to altcoins.
Lee noted that bitcoin [BTC] recently broke the 200-day moving average that according to his beliefs indicated that the cryptocurrency’s recovery is occurring at a faster pace than expected. This corresponds to what he stated in mid-March, when Lee shared that he thinks “the key number to watch is the 200-day moving average.”
According to Lee this breakout could also mean that the recovery won’t be different than it has been in the past, and that bitcoin has the potential to jump to new heights, although he doesn’t know when.
Earlier in April CoinMarketFeed reported, Thomas Lee revealed on April 11 that his “Bitcoin Misery Index” (BMI) recently hit its highest value since June 2016. He suggested the data could be a positive or a Negative sign.
The Bitcoin Bull, Tom Lee created and developed the BMI, Bitcoin Misery Index with an aim to provide investors information about how “miserable” Bitcoin (BTC) holders are depending on the coin’s price and volatility. According to the reports, prominent cryptocurrency hit a value of 89 on April 2, when the cryptocurrency witnessed a sudden rise above $5,000 level since November. The Miserable Index allocates a value of 100 to positive sentiment and 0 to outright misery. Depending on the index value the amount of misery is calculated.
Lee opinionated that Bitcoin has reported its highest reading value since June 2016 which gives a mixed signal. He suggested two interpretations of the index, writing on his official Twitter handle,
“Good--> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad --> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”