From "Bitcoin Misery": Now is the time to buy bitcoin

The Bitcoin Misery Index, created by Wall Street strategist Thomas Lee, points out that this is the time to buy #Bitcoin, according to CNBC. He did not change my mid-year price target at $ 20,000, and the end-of-year price target of $ 25,000 for bitcoin.

"When the #Bitcoin misery index falls below 27 points, Betcoin will see its best performance in 12 months," Lee, founder of Fundstrat Global Advisors, told CNBC's Fast Money television program on Friday. The strategic point is that this signal comes every year.

The lowest since September 2011. The index now stands at 18.8 on the 100 scale, making it the lowest point since September 6, 2011. Lee says the index provides a way to measure your happiness or unhappiness with owning a home. Investors must start buying when it is low, while they should sell when it is high. The index represents the number of trades winning from the total trading, and also shows volatility.

On the other hand, #Bitcoin fell by 24% at the end of last week, from Monday's high, after reports of high regulatory oversight. Low points indicate pain levels, although they are short-term signals. He explained to me that the low points could indicate a great entry into the long-term #Bitcoin.

What are the patterns of the past?
In the four times the index dropped below 27 points on the "Bitcoin misery" index, #bitcoin also failed to rise after 12 months, according to Lee. Last week was a tough week for #bitcoin. Where a major trading platform - based in Hong Kong - reported on Wednesday that some accounts may have been compromised. At the same time, the US Securities and Exchange Commission (SEC) has raised its watch over digital currency portfolios and trading platforms. On Thursday, Japan stopped two digital currency trading platforms for a month and called for improvements to work on five other platforms.

He also said on Wednesday that the custodian of the now-dissolved trading platform "Mt.Gox" had sold about $ 400 million worth of #Bitcoin and Bituene Cash. Bitquin traded more than 3.5% of the lowest level on Friday morning around the price of 8,900 dollars per piece. While it remained 800% higher than a year earlier, it lost more than 50% of its record price of over $ 19 thousand in mid-December.

In this regard, he told me that it is not uncommon for a person to be very upset about owning a home. The last such periods were November 2012, September 2016 and January 2015. In all of these cases, the #Bitcoin reached higher levels than in the following month.

Wait a week to 3 weeks, he told me
He explained to me that the indicator tells people to wait a week to three weeks. He is the only Wall Street strategist to issue regular reports on #Bitcoin and official price targets. Prior to founding Fundstrat, I was the head of strategic equity at JP Morgan Chase. He still keeps his half-year price target at $ 20,000 and his year-end price target at $ 25,000 for the petit.

Source: CCN