According to a new Bitcoin Index, now is the best time to purchase Bitcoin. According to the creator of this index, a signal is generated about once a year. The creator of the index said that the misery index was at its misery, or below 27. He said that he expected the bitcoin to see its best performance in 12 months after this.
Where Is The Bitcoin Misery Index Right Now?
The report for the misery index shows that it is at 18.8. This was the lowest it had been since September 6, 2011. According to its creator, this index was simply a way to measure how happy or sad people were to hold on to bitcoin. On Friday last week, the index was at about 18.8 out of a possible 100. This showed that those who own bitcoin felt quite horrible right now.
Just like other sentiment indicators, the misery index is meant as a contrarian indicator. When the index is low, that is the time to buy. When the index is high, investors should sell. Some of the factors considered for this index include things such as the number of winning trades out of all trades and the volatility.
This report was released after a very tough week for the Bitcoin. The crypto coin lost about 24 percent of its value from a high hit on Monday. This was after the release of a few reports, which have raised concerns about increased regulatory scrutiny.
In the short term, the low points signal pain. However, in the long term, this could be a great way for investors to make an entry into bitcoin. The creator of the index noted that in all the other instances when the index had been below 27, there was not an instance when the Bitcoin had not risen 12 months later.
News About Crypto That May Be Affecting Its Price
On Wednesday, a major Hong Kong exchange said that some of its accounts were hacked. Meanwhile, the US Securities Exchange commission expanded scrutiny to cover exchanges and wallets. In Japan, the regulator suspended all operations at two exchanges for a month and ordered five others to make improvements.
Another incident that affected sentiment on Wednesday was the revelation that Mt. Gox’s trustee had sold over $4000 million in Bitcoin and Bitcoin Cash. By Friday morning, the price of Bitcoin had fallen by about 3.5 percent. However, despite this dip, the digital currency is still 800 percent higher than it was 12 months ago. However, it has fallen by over 50 percent from its high of $19,000 in mid-December 2017.
Tom Lee's To Buy Or Not To Buy BTC Signals
The creator of the index said that it was quite rare for people to be miserable about owning Bitcoin. However, every time it dipped to such a low, the price was higher a month later. Thomas Lee, the man behind the index, is the only major strategist on Wall Street who issues regular reports and price targets on BTC. He previously worked as the chief equity strategist at J.P. Morgan Chase.