Bitcoin (BTC) Mid-Day Update: Bitcoin Misery Index (BMI) Flashes a Buy Signal
Bitcoin (BTC) seems to be tracking the pathway put out in this morning's short term update. Price has dipped below the blue upward pointing wedge. The Right Shoulder (RS) pattern formation remains in the process of completion and likely most of today and night will work on that.
From the larger perspective, the blue Wave D is still in progress and blue Wave E is projected to be a third wedge pattern.
The daily MACD is at the point of contact between the white 12 day and the red 26 day moving averages. Further upside is needed to enable the cross upwards for a buy signal.
The below is called the Bitcoin Misery Index (BMI) put out by Tom Lee from FundStrat. The BMI was recently registered at a near all time low of 18.8. The buy signal is when BMI is below 27 and each time this level was attained, prices were much higher 3-4 weeks later. It's a very good contrarian indicator.
(Source: FundStrat; Tom Lee)
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?