• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

Bitcoin Misery Index Reaches 2016 High: Is a Price Crash Imminent?

Samuel Wan by Samuel Wan
3 years ago
in Bitcoin, Cryptocurrency news, Technical analysis
Reading Time: 2 mins read
Advertisement

Thomas Lee, the co-founder of Fundstrat Global Advisors, has tweeted that the Bitcoin Misery Index (BMI) is at 89. Developed by Lee as a trading tool for investors, the current BMI value signifies a “happy” sentiment in the markets. However, according to Lee, BMI measures above 67 see a sell-off, triggering a drop in Bitcoin price. With this in mind, is a price crash imminent?

The Bitcoin Misery Index reached 89 on 4/2. Highest reading since June 2016. Means good and bad.

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.#bitcoinmiseryindex pic.twitter.com/X55q2ypiCA

— Thomas Lee (@fundstrat) April 11, 2019

The Bitcoin Misery Index

The BMI is available as a paid service through the Fundstrat website. It is a numerical index that ranges from 0 to 100 and measures the momentum of Bitcoin based on its price and volatility. An index value below 27 is considered “miserable” and represents a good buying opportunity. Whereas a score above 67 is “happy” but denotes a sell signal. Speaking to CNBC in 2018, during the launch of the BMI, Lee said:

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

“When the bitcoin misery index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance. A signal is generated about every year. [And] when the BMI is at a ‘misery’ level, future returns are very good.”

He goes on to say that readings over 67 only come during bull markets. However, when this happens, the price of Bitcoin usually falls by an average of 25%, as investors look to take profits. As things stand, with a current reading of 89, Lee’s prognosis would see a fall in Bitcoin price to around $3,800, but signal the start of a bull market.

Analysis of Historical Data

While the start of April saw a return to optimism, according to Lee, that feeling may be short-lived. The BMI current stands at 89, the third highest reading since BMI records began. And the highest reading in the thirty-four months following June 2016’s previous peak value.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

According to Lee, a BMI value above 67 only happens before a bull run, and, in the short-term, leads to an average 25% drop in Bitcoin price. Analyzing the previous three peaks:

  • 13th June 2016 – BTC price $693. Months of sideways movement until around Dec 2016 when the price started rising to around the $800 mark. This period saw no mass sell-offs and no significant bull runs.
  • 4th January 2017 – BTC price $1,100. January 2017 saw no significant movements with the month ending at $921. However bullish action did arrive around March 2017.
  • 14th August 2017 – BTC price $4,165. A month on saw BTC price at $3,267 on the 14th September 2017, and eventually rallied to all-time highs towards the end of the year.

Two of the three BMI peaks loosely fit Lee’s inferences. But the 13th June 2016 did not see any significant falls or rises.

Pay Caution

One thing to note, the BMI is not a price predictor; instead, it is a measure of market sentiment. And in any case, according to Helfman, Lee’s price predictions have rarely materialized. Taking all of this into account, while Lee’s efforts for the crypto-community are highly appreciated, any forecast should be treated as a possibility rather than a certainty. As such, for now at least, there is no need for panic.

Tags: bitcoinbitcoin misery indexthomas lee
Tweet123Share222ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Related Posts

Bitcoin Dominance Remains High As Market Sell-Offs Settle

48 mins ago
Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

5 hours ago
bitcoin

Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

7 hours ago
CoinEx Charity Book Donation Worldwide: Over 10,000 Books for Children’s Dreams

CoinEx Charity Book Donation Worldwide: Over 10,000 Books for Children’s Dreams

7 hours ago
Six Years of Relentless Efforts: ViaBTC is Always on the Way

Six Years of Relentless Efforts: ViaBTC is Always on the Way

7 hours ago
Top 3 Web3 Coins to Watch in 2022

Top 3 Web3 Coins to Watch in 2022

7 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Interest-free Loan, New way of Assets Increase

May 26, 2022

Hoskinsea Partners with Pavia land to Setup A Virtual Headquater On The Metaverse

May 26, 2022

The first free and equal digital country – HyperNation global theme conference was held

May 26, 2022

HyperNation’s event launch sales on HITCHHIKER OF STAR (H.O.S) went out like wildfire

May 26, 2022

Metaverse Real Estate Sells For A Record $5,000,000 inside TCG World

May 26, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.