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Good Time to Purchase Bitcoin, Misery Index Shows

Samantha Mitchell

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Good Time To Buy Bitcoin

According to a Bitcoin misery index designed by Thomas Lee, a strategist working with Wall Street, it’s the perfect time to purchase this largest digital coin. Earlier on, Thomas Lee had set $20,000 as his mid-year price target for the virtual currency while the end year price was set at $25,000. All these haven’t changed.

The Best Performance for Bitcoin

While speaking on “Fast Money”, a program held on CNBC, this finance expert stated that Bitcoin has its best annual performance. Lee who also founded the Fundstrat Global Advisors said on 9th March 2018 when he had the interview that Bitcoin recorded a great success when the index fell below 27. He went further to observe that signals of that kind only come once in 12 months.

Lowest Index for More Than 6 Years

The Bitcoin misery index has had the lowest index since the September of 2011. On a scale of 100, the index is currently at 18.8, which is actually its lowest point since 6th of September 2011.

The main aim of offering this index, according to Mr. Lee, is to measure either the happiness or sadness of a Bitcoin user when in possession of the currency. It is a kind of a contrarian indicator.

Whenever the index drops, it becomes the best time for Bitcoin investors to purchase the crypto coin. On the other hand, they should sell the ones they have whenever the index goes up. Apart from accounting from the amount of winning trades coming out of the total trades, the index also takes account of the market volatility.

Just as the last weekend was coming to wrap, the prices of Bitcoin came down with almost 24% from the highs it had recorded at the beginning of the week. These were however attributed to the reports that emerged regarding the regulatory scrutiny. Despite the fact that they are short-term signals, Mr. Lee explained that the low index points indicate a kind of pain.

Predictions on the Past Market Patterns

According to Mr. Thomas Lee, Bitcoin did not fail to soar up each time that the index fell below 27. This has been in the last four times the index has gone below 27 on the misery index. The first week of March was a tough one for Bitcoin.

A report released by an established exchange in Hong Kong indicated that certain accounts might have been compromised. As that was underway, the securities and the exchange commission of the United States {USSEC} advanced its scrutiny of the virtual currencies exchanges and wallets.

On Thursday, 8th March 2018, the Japanese authorities suspended the operations of two virtual currency operations for a month. They later asked other five exchanges in the country to improve on their businesses lest they face the same wrath.

Mt. Gox Actions

In the same week, Wednesday to be precise reports also emerged that the now-defunct Mt Gox Exchange offered both Bitcoin and Bitcoin Cash worth $400 million for sale.

Wait for At Least 3 Weeks,

Says Lee.

According to Thomas Lee, the index is advising the consumers to wait for at least three weeks before they can tell the direction the market is taking.

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