Wall Street analysts create 'bitcoin misery index' for traders! MUST READ!
The index is known as the bitcoin misery index (BMI) and is designed as a trading tool for investors to use the volatility of BTC exchanges. The BMI is calculated on a scale of 0 to 100, taking into account factors such as volatility and the total number of profitable transactions. When the indicator is low, the buying opportunity is at its best and vice versa.
“When Bitcoin's pain index is 'pain' (below 27 years old), Bitcoin sees the best 12-month performance. It generates a signal every year,” Lee explained to CNBC in a Friday report. "When BMI is in the 'pain' level, the future returns are very good."
The report said that the current Bitcoin index is 18.8, which is the absolute lowest point since September 6, 2011.
At the moment, the Bitcoin index is at 18.8, which is an absolute minimum since Sept. 6, 2011, the report said.
Lee's comments occurred after an important cryptocurrency market fell, with BTC falling almost 27% after hitting a weekly high of $11,675 on Monday, March 5. A series of negative news led people to become more and more concerned about more regulations on the encryption market.
On March 7, the US Securities and Exchange Commission (SEC) issued a statement that all trading securities platforms need to register with the agency as an exchange. According to the report of the Japanese government on March 8, the Japanese authorities temporarily suspended the activities of the two cryptocurrency exchanges and issued "punishment notices" to another seven.
Although Bitcoin currently exceeds 50% above its $20,000 high in December 2017, Lee has not abandoned his optimistic expectation of $25,000 at the end of 2018.
According to CNBC, Tom Lee is known for his promising outlook for BTC and is "the only Wall Street strategist to publish regular reports and official Bitcoin price targets."