It’s been quite a roller coaster ride since the beginning of the year with bitcoin falling as much as 70% at its worst.
The market seems to be pretty depressed now and sentiment is low. So that begs the question, is it time to buy bitcoin?
Today we’ll look at a couple different metrics and see what they say.
The first metric is the 200 day moving average. It simply averages the closing price for the last 200 days.
The 200 day moving average is good because it gives a good long-term look at the movement of an asset.
As you can see in the chart below the 200 day moving average is providing good support right.
If you want to follow the 200 day moving average for BTC check out the Mayer Multiple on Twitter.
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The next metric is from Tom Lee of Fundstrat Global Advisors. He’s been the only Wall Street analyst to cover bitcoin.
And overall he’s been bullish. His latest call is for bitcoin to hit $20,000 again by mid-year and then finish the year at $25,000.
Now he’s come up with a metric he calls the “Bitcoin Misery Index.”
It’s a sentiment indicator that ranges from 0 to 100. When sentiment is low it ranges towards 0 and when sentiment is high it ranges towards 100.
You want to buy when sentiment is low. According to Lee when the BMI is at a misery level the future returns are very good.
And we’re there now.
Looks like a good time to buy. Are you buying BTC?
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