Wall Street Analyst Created an Index That Gives Signals When to Buy Bitcoin
March 12, 2018
A Wall Street analyst Thomas Lee has created his version of "misery index" specifically for bitcoin, that tells investors when to buy the cryptocurrency.
According to this index, right now it is high time to buy bitcoin. The misery index of bitcoin is currently at 18.8, which is the lowest value since September 6, 2011. This index works as follows: it shows how "miserable" bitcoin holders are right now Its current value means that they are definitely hot happy with the situation on the market.
Below you can see the history of bitcoin misery index from August 2010 till present.
Misery index is a reversive one, just like many other financial indexes. It means that when the value of the index is low, investors should buy bitcoin, and when the index is high, they should restrain from buying BTC. The index is calculated on a scale from 0 to 100. Such factors as the share of winning trades among all trades and the general volatility of the market are taken into consideration when the index is calculated.
Thomas Lee is a co-founder of an independent research company Fundstrat Global Advisors. He is also the only major Wall Street strategist that covers bitcoin. Lee regularly issues reports and gives predictions on the future price of bitcoin. Last month, he