Famous Funstrat’s Head of Research and prominent Bitcoin Bull Tom Lee has raised the hope of investors and Bitcoin proponents again, this time saying that Bitcoin will likely make a huge recovery in the year 2019.
In an interview with Cointelegraph, Lee pointed out that Fundstrat’s most recent Bitcoin Misery Index (BMI) at 89 is at its highest in the last few years and a sign of good fortune for Bitcoin within the year. The BMI is a method invented by Fundstrat to assess market status by taking several factors into account.
Last week, Lee mentioned that the BMI was at 67 and was indicating a sell-off that will later lead to a crash in Bitcoin price. At the time, Lee said a crash was imminent with such a BMI and Bitcoin would lose at least 25% of its price. In his words, he said:
“When the bitcoin misery index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance. A signal is generated about every year. [And] when the BMI is at a ‘misery’ level, future returns are very good.”
Last week was the first time Tom Lee predicted a price crash for Bitcoin in 2019, however, the BMI has changed in the last week to indicate a brighter future for Bitcoin, which is a dream come true for investors. Fundstrat’s BMI has never reached 67 in a bear market since 2011, so a BMI of 89 in a bear market now is a clear indicator of a bull run according to Lee.
Lee had also predicted earlier this year that Bitcoin will make some recovery but nothing spectacular. However, with the recent developments, he confesses that the recovery will be much faster than he anticipated and how far this will take Bitcoin is unknown.
Bitcoin has indeed been very strong against the bears. It seems to have established support above $5,300 as the price has been hovering within the range in the last 24 hours and seems to be pressing higher. In line with Lee’s BMI prediction, we may be heading for a huge move before the end of the year, and who knows what will happen after then?