Bitcoin Misery Index Is Showing A Rare Buy Signal

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Sentiment Analysis is helpfull to detect longterm market lows. The bitcoin misery index right now is showing the lowest readings since 2011.

"When the bitcoin misery index is at 'misery' (below 27), bitcoin sees the best 12-month performance," Fundstrat Global Advisors co-founder Thomas Lee said in a Friday report. "A signal is generated about every year." The bitcoin misery index is at 18.8, its lowest since Sept. 6, 2011, the report said. "Think of this index as a way to measure how happy or sad you are owning bitcoin ," Lee told CNBC on "Fast Money" Friday evening.
As of Friday the index was around 18.8 on a scale of 100, "telling us that bitcoin holders are miserable," right now, said Lee, who pointed out that it was the lowest reading since Aug. 2011. ( )


Sentimentanalysis is one part of market analysis. The BTC chart today is indicating a possible bullish reversal pattern wich might confirm the Bitcoin sentiment based buy signal.

Bitcoin Misery Index:

Market Sentiment Analysis:

Comment: BTCUSD @ 9.350: Bitcoin is trying to break the major downtrend line

Comment: BTC@ 9.420 - Reversal Pattern likely to be completed today.

Trade active: BTC @ 9.200 - BTC re tested the lows. Second attempt to break above the major downtrendline is running now. If ever this might be succesfull the break below would be a false break matching high pessimism. If bitcoin is able to raise above this downtrendline again it should be a perfect set up for any long position. Reasing bearishness of market participants should remind long traders to be carefull. Any break below 8,3 is likely to trigger more panic selling. If this attempt to break above the downtrendline is going to fail than traders and hodlers needs to react quickly and sell.


Trade active: BTC @ 9.650: Re beak above major downtrendline. Sentiment analyis is definitely helpfull to understand market price actions. It looks like that BTC´s drop below the major downtrendline was a false brake.

BTC 1h

Trade active: BTC is following precisely technical chartpatterns:

Trade active: BTC @ 9.710: BTC above Downtrendline. Not out of the woods probably but a positiv technical sign of market strength.

Trade active: BTC @ 9.100: Wild swings @ downtrendline.


Trade active: BTC@ 9,2k: UNCH - Price action @ downtrendline

Trade active: BTC@ 9,2k: UNCH - Price action @ downtrendline

Trade active: BTC@ 9,2k: UNCH - Price action @ downtrendline

Trade active: BTC @ 9,2 k: Bitcoin is moving sidelines - but crossing the downtrendline.

Moves like this are at least a sign of bottom building. Next move should be to the upside.
Trade closed: stop reached: BTCUSD: Bitcoin could raise to 9,4 k in the morning. Negative momentum returened quicly after negative news from google had been vowed.

Google says it will ban cryptocurrency ads
Trade closed: stop reached: BTC @ 8,3k

BTC at SL Order Level 8,3. Trade closed - risks to high.



Update was made on time here:
Trade active: News: Bitcoin briefly drops below $8,000 again

Finance ministers and central bankers of the Group of 20 major economies are set to meet in Argentina this weekend and are expected to discuss policy on cryptocurrencies.
Bitcoin briefly dipped below the psychologically key level late Thursday morning New York time on Coinbase, the leading marketplace in the U.S. for buying and selling major cryptocurrencies.
Bitcoin fell Wednesday after Google said it would ban advertisements for cryptocurrency-related products beginning in June.
Trade closed: stop reached: Remark: Trade was closed and is not active.
Trade closed: stop reached: BTC @ 7.865: Sentiment turns more negativ:

Bitcoin's `Death Cross' Looms as Strategist Eyes $2,800 Level
Trade active: re entry @ 8.400 after BTC breaks above downtrendline - once more.

(please click on the chart to load facts & figures)

Related Ideas


I agree here. Sentiment analysis is more important than ever in the crypto markets. I just made a post about this in another chart. Fear is high. Doubt is rampant. Everyone is uncertain.

This has both good and bad indications for investors here. Bad in that we won’t see much new money flowing into a fearful market. Good in that we are flushing out the weak holders.

I am still bullish long term despite the current conditions. People can’t see the forest for the trees. Scale out. Do research. Use your head. I’m not selling because my portfolio loses 70% value. Why? I know where this is going in the longer term. I’m not going to sell at a loss when I know this is just a temporary situation. It’s natural for markets to go through good and bad times. If you can’t handle the volatility and dips, then get out of the market and stay out. Crypto markets are not for emotional people. They will get eaten alive.

The strong will keep their investments, they’ll buy low when everyone else is scared, and they’ll stick it out. And they’ll profit when everyone else has given up and given in to FUD.

Strong hands, serious investors, stay strong. Don’t sell at a loss like all the weak ones. That’s exactly what the big guys want. And they’re getting their way because of all the weak hands here.
+6 Reply
SwissView TheGush
@TheGush, I follow sentiment analysis in other markets for 30 years. I did not expect that sentiment analysis might be helpful for cryptos - but it looks like it is.
+1 Reply
@TheGush, well said.
Look at all these arrows pointing upwards... This could be a study in confirmation bias.
does trading view have BMI (Bitcoin Misery Index) functionality?
SwissView ClayCook
@ClayCook, this indicator is developed by an anaylst. It is unclear, how precise this indicator is. TVC don´t have this indicator. Past tradingdays showed, that sentiment is overwhelming bearish - but it could turn more bearish any time. I would follow chartpattern to see, if this Sentiment View is confirmed by market price action.
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