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Tom Lee's Bitcoin Misery Index Hits Highest Value Since 2016 In Possible Bull Signal

• https://www.zerohedge.com, by Mari Huillet

The BMI — which Lee designed with the aim of informing investors of how "miserable" Bitcoin (BTC) holders are based on the coin's price and volatility — reportedly hit a value of 89 on April 2. The Index assigns a value of 100 to positive sentiment and 0 to outright misery.

Historical BMI chart 2011-2019, with Tom Lee's analysis. Source: Thomas Lee's Twitter, April 11

According to Lee, the fact that Bitcoin has reported its highest reading since June 2016 provides a mixed signal. He proposed two interpretations of the index, writing that:

"Good--> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad --> BMI >67 after peak, $BTC falls ~25% = Profit taking ST."

In a further tweet in the same thread, the strategist argued that "the main takeaway is that BMI reaching 67 is further evidence the bear market for Bitcoin likely ended at $3,000."

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