Thursday , July 29 2021

Signal valuable? Bitcoin Price & # 39; Misery Index & # 39; stands out for three years

The Bitcoin price market "has probably finished $ 3,000," the well-known analyst Tom Lee said his trusted tool "Bitcoin Misery Index" ("BMI") reaches a maximum of three years.

BMI Says Bull Market

Lee, who is well-known among the merchants of cryptomoneda as a great bullish voice in Bitcoin and makes regular appearances of the mass media. highlighted His readings of decidedly unfortunate index in social media on April 11.

Lee's BMI offers a score of 0-100 for the price of Bitcoin, telling traders when it is bought and when sold based on the global "misery" of the market.

A score of 27 or less constitutes "purchase", while something other than 67 orders the reader to sell.

After the price of Bitcoin 00 rose $ 1300 in days to reach $ 5330 last week, the IMC saw a dramatic awakening. After disappearing at 34 in late March, his last reading is 89, the highest since June 2016.

Bitcoin price

$ 3K was the price of Bitcoin & # 39; Bottom & # 39;

For Lee, this brings mixed signals, Senior Analyst at Fundstrat following the steps of veteran trader Tone Vays declaring the bullish momentum behind Bitcoin may not mean an unequivocal reversal.

Unlike Vays, however, he suggested that the main message behind Bitcoin's price was that it was unlikely to fall below $ 3,000, while Vays retained up to $ 1000 in the game.

"The main objective (sic) is that the BMI that reaches 67 years is another evidence that the bear market for Bitcoin probably ended at $ 3,000," Lee said.

The recovery probably surprised Lee, along with many others. Before the increase, Lee even promised to stop giving Bitcoin prices.

"Due to the inherent volatility of encryption, we will stop providing any deadline for the realization of fair value," said Fundstrat's customers in December.

Eyes in 5900 dollars

There are also several Bitcoin network indicators and external measures, adding weight to the theory that the darkest days of cryptomoneda are now back and forth.

How Bitcoinist reported earlier this week, the recurrence of the so-called "Kimchi Premium" – a surcharge for Bitcoin purchases in South Korean exchanges – excited commentators. Like the high readings of Lee, the prize only appeared in the markets of Bitcoin bulls.

The phenomenon closely followed China's new stock, where traders seemed to avoid highly restrictive regulatory structures to invest in Criptomoneda through Stablecoin Tether, also at a fixed-term award.

On Friday, the price of Bitcoin has recovered modestly until it reaches 5100 dollars a day after falling from $ 5440 maximum.

With the exception of empty moments, Bitcoin already has support in 5000 dollars from the 5 of April. Bitcoinist On Wednesday, a short-term price target of around $ 5900 was projected.

What do you think of the Bitcoin price and Bitcoin misery index? Let us know in the comments below!

Images through, Shutterstock

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