Wondering if it's the right time to buy bitcoin? The BMI (Bitcoin Misery Index) says yes!
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!!
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
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