Tom Lee, the founder of Fundstrat Global Advisors, has recently announced that a key Bitcoin sentiment indicator is now suggesting that the bear market has subsided. This comes just a day after another report similarly suggested that the cryptocurrency industry’s bear market is ending.
BMI is showing scores never seen in a bear market
These latest comments from Lee, however, came during a recent YouTube interview with CoinTelegraph, published on April 19th. In it, Lee – who is a well-known Bitcoin proponent – noted that a Fundstrat Global Advisors’ market sentiment indicator, called the Bitcoin Misery Index (BMI), is now indicating that the bear market has ended.
Specifically, the market sentiment indicator – which works by weighing various factors to calculate an index score for Bitcoin investor sentiment – recently reached a reading of 89. This took place on April 2nd, the same day that the price of Bitcoin surged past the psychologically important $5,000 barrier.
What’s more, Lee also revealed that the indicator tool has never had a value of more than 67 in a bear market. Consequently, Lee went on to state that this ”means that a bull market is likely starting.”
A BMI score of 89 is supposedly the highest since June of 2016 and could, as such, suggest that a bull run is approaching.
Although critics sometimes lambast Lee for being an ever-hopeful ”Bitcoin permabull”, it is impossible to argue with the facts – and the Bitcoin Misery Index is indeed factual, as it represents a compilation of investor sentiment.
Bitcoin has also passed its 200-day moving average
Nevertheless, it should be noted that Lee added that when the BMI reports high values such as this, there is likely a short-term drawdown in the market.
Moreover, the drawdown has previously averaged around 25%, and as such, it is not surprising if the market experiences some turbulence. For instance, Lee predicted that it could similarly be feasible that some investors reallocate capital from Bitcoin to altcoins.
All in all, however, Lee is interpreting this as a bullish sign for Bitcoin. In addition to this, Lee also highlighted the fact that Bitcoin has now surpassed its 200-day moving average, which is currently approximately $4,600.
This is a further sign that Bitcoin is now objectively in a positive price trend, and Lee also added that it indicates that Bitcoin’s recovery is ”taking place faster than we expected, and that [Bitcoin’s] price recovery cycle won’t be any different than [in] the past.”
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.