According to the Bitcoin Misery Index, right now represents a great time to buy Bitcoin.
In fact, right now is the lowest (best) reading on the BMI since September of 2011.
Which means, this is possibly one of the better times to buy bitcoin, based on this index, in the last 7 years.
That all sounds well and good, but what the heck is the Bitcoin Misery Index?
I'm glad you asked!
The BMI is an index based on a research report put out earlier today by Fundstrat Global Advisors.
In summation, Tom Lee (co-founder of Fundstrat) sums it up as this:
"When the bitcoin misery index is at 'misery' (below 27), bitcoin sees the best 12-month performance. A signal is generated about every year."
Basically, what he is saying is that when things are the most miserable, the returns over the next 12 months have been the greatest.
What does it take into account?
It isn't entirely clear what all the inputs are, but Fundstrat did leave a couple comments on what comprises the index.
According to Fundstrat, the BMI takes into account factors such as the number of winning trades out of the total and also volatility.
Here is a visual:
As you can see, if you had bought bitcoin each time the BMI crossed 27 to the downside, you would have made a minimum of 20% and a maximum of 3600% over the next 12 months.
Currently it sits at 18, the lowest it has been in almost 7 years.
Not sure about you, but given this data, bring on the Misery!
Tom Lee seems to agree:
"The BMI is telling us to keep the negative headlines in perspective. When the BMI is at a 'misery' level, future returns are very good."
Oh, and Mr. Lee also reaffirmed his price target for bitcoin of $20k by July of 2018 and $25k by the end of this year.
Stay informed my friends.
Image Source:
Follow me: @jrcornel
Bring on the Misery! 👍😁👍
Haha, humor never dies!
“Buy when there’s blood in the streets, even if the blood is your own.” - one of the Rothschild banksters.
Here here!
I'll second that... Excellent timely quote ;-)
This chart just saiys buy any time and make a profit someday :P.
It is the selling that is the hard part!...
Haha there is certainly some truth to that...
I’m ok with a buying opportunity like this even tho I like seeing prices go up. I’ve got some buying power over the coming months. Either gonna get in good or take it on the chin! Lol Thanks for the post!!
Same here. With tax returns coming out, I would imagine many American's will have some dry powder coming up here.
Perfect!
If it really feels like the wrong time to buy as the price has fallen so much, it’s probably the right time!! Be bold when others are fearful!!
well the price has been discounted by about %20 - %25 if you where thinking of buying a few days ago. I think it's a great time to buy as it's very close to the 200 day moving average and is still well below to 100 day
On the other hand, if bitcoin recovers lets say 30%, non scammy altcoins may shoot up with three digit rise.
Interesting approach. Let's see where we are in 12 months. All signs point up...
Never heard of bitcoin misery index, but I have heard of body mass index,we learn new things everyday . If bitcoin had a body mass index it would be extremely emaciated.maybe it's good time to get as much bitcoin as possible with time and favourable conditions it should fatten up hopefully.
Haha, in both indexes a lower number is better. ;)
BMI reports suggest bitcoin should be bought now cause by states it’s the lowest graph in last 7 years, thumbs up for those who are buying them.. thanks for sharing the news @jcornel
Yeah that is the best way to go
I am glad some of my orders went through earlier... have a few more orders set... one day I will laugh with my kids that bitcoin was this low
Too bad, I'm out of money. 😂
Hahaha I think most of us are just about drained... need this bull run to start already so I can feel justified in the amount of money I have spent in the ladt 4 -5 months
Fuckwitt
i dont think most of the Cryptos will reach the value they had in dec2017 again.....people have started losing interest again well most of people right now who are holding CryptoCurrencies right now are new people who have seen alot of growth in market and bought and after seeing whats happening right now this people are getting desperate for selling their Cryptos.
I really do not think the Crypto Market can be stable for at least next 4-5 months sad thing but i think thats exactly whats going to happen.
I think I need to wait a little longer
Same too
Great article. Now that they brought on the misery, we're strapped in and ready for takeoff. Have a great Sunday
This picture caught my eye! One of the coolest pictures I’ve ever seen.
Unfortunately or fortunately, the BMI being at this will probably scare many people away. They prefer to buy with the index is super high levels.
I’m really curious to see if we spike down close to $5k or if we rebound quickly
That does seem to be how most people think. I had a ton of people calling me asking if they should be buying bitcoin when it was running up near $20k. I didn't feel comfortable telling them to then. Now, no one is calling me to ask if they should be buying with prices around $9k. Probably tells me everything I need to know about whether this is the time to buy or not. Buy when everyone hates it! :)
I agree with you....
Yes you’re exactly right! I haven’t had anyone new contact me about getting in since it started dropping. On the run up it was crazy with people coming out of the woodwork asking if I could help them purchase some..
You make a good point, @sevinwilson. It's so true too. Most are emotional followers and not leaders or pioneers... Have a great Sunday
yeah it may be a right time but i personally feel that bitcoin would again suffer serious confrontation as it is being. Ripple is the whose future is secure wrt cryptocurrency
Is this misery really worse than when it was close to $6500 in Feb? You would have thought that might have triggered something. Interesting article. Thanks for sharing!
Yes, by this index it is! :) Though it would be nice to know exactly what inputs went into creating this index.
Maybe they just couldn't measure it because the index wasn't around a month ago. Who knows! Like you said, it would be nice to know what inputs they used.
I can almost smell the fear in the market... may be a good time to add to long term positions throughout the crypto space.
I have been. :)
Like most others I really hope that btc and all alts will rise again.
But I do have the feeling that all, so called, experts keep predicting BTC will be back @ 20K at x amount of time. At one day ones of these will have it correct.
But I have to admit that it is a great idea to create a misery index. Made wy wonder if there was also a moon or happy index but sisn’t found such a site.
Maybe an idea to create one
In this guy's defense, his calls on bitcoin have been pretty good since he's been making them. He was also one of the better stock pickers and price predictors that I have ever seen from his days on Wall Street. In fact, of all the ones I followed, he was correct the most often.
This picture caught my eye !!!
Thanks for sharing the news @jcornel
It's a catchy one isn't it :)
Good Post.
👍
Misery loves company... ha ha! But I agree Bitcoin is a winner long term.
Well put... ;-) Have a great Sunday
Well, not all models work for ever, so maybe it actually isn't the best time to buy in, just because there aren't as many small investors as there used to be
P.S. Just my opinion, you don't have to follow it (looking at you HODLers)
a good Bitcoin Misery Index @jrcornel
This dip should provide some insight into how much money has been sitting on the sidelines waiting for a better entry price. I have a feeling that even if we see a dip to 200 day support the price of BTC will recover quickly. There is so much momentum around crypto and we are starting to see actual applications coming into the market.
Ok that's a pretty compelling intro @jrcornel. Nice hit stunner> This BMI Misery model reminds me of my life. I've been so so so low. And I learnt to rejoice in that tempreture, but things have changed dramatically in a short space of time, so I'm looking forward..
Thank you @jrcornel..
I would take more factors into consideration than the BMI. Do some technical analysis and see where Bitcoin is going in the shorter term to get a better buy. The bears are still in control.
stats show this is the best time to buy bitcoin but big heart people will buy :p
Well hopefully this means that the next 12 months are going we are going to see the bulls take us for a run, because these bears are starting to get boring...
Just wanted to say, I find your posts useful.
I just wised to have some more dough laying around to play with atm. I do agree with you here!
t.
I don't think Bitcoin will have a price of below $5000. Maybe it's time to buy and convert it to some alt coins.
I hear Bitconnect is a good deal. :)
I had a ton of people calling me asking if they should be buying bitcoin when it was running up near $20k. I didn't feel comfortable telling them to then. Now, no one is calling me to ask if they should be buying with prices around $9k. Probably tells me everything I need to know about whether this is the time to buy or not. Buy when everyone hates it! :)
If this isn't the right time to buy crypto........ and the right time is in a couple of months from now when it hits really rock bottom then we're all going to be completely screwed.
Haha something like that. Or we just buy more then. ;)
Don't you think this is the wrong group to ask that question? I mean bias.....
I believe the value of cryptos will drop a little more before they come up again.
Yes, this is the right time. Nice information to share with everyone. Thanks.
Yeah @jrcornel! Buy when misery is high and sell when it's in euphoria! Great post!
bitcoin is going down and so all of the altcoins
LOL that BMI cracked me up
This is the type of data that I´ve been waiting for to buy more BTC and consequently other coins, I am only waiting for the price to reach below $7K again, and I´am all-in into crypto.
Even without much analysis you can realise that after almost 2 months going down, the markets will eventually go up, so it is very close to be a good buy or a perfect buy...
It will be weeping and gnashing of teeth - when BTC will soon be up to 5,000USD. When the price will drop - looking for support. No miracle indicators will help anyone.
Especially - when - EVERYTHING is based on PRICE - and like the other ones - they will show exactly the same - when we have a bear market.
I do not believe any news - especially CNBS.
News for sheep. Are you a sheep?
Do not be a sheep - be a wolf - predict how they will act, sheep will react. Be smart money.
One thing is positive - BTC will be cheaper - and will offer a greater return on investment in the future.
Great find!
very interesting post, thank you for sharing it with us .
Check my post regarding bitcoin :
https://steemit.com/bitcoin/@sergiudemerji/i-think-2018-will-be-a-crucial-year-for-bitcoin