Fundstrat Global Advisors founder Tom Lee has said that his company's Bitcoin Sentiment Indicator, the Bitcoin Misery Index (BMI), has never reached a value similar to the current one in a bear market.
Lee highlighted that the BMI did not exceed the 50 points last year, whereas it has recently reached 89. According to him, this index has never registered values above 67 during bears markets. He believes this can only mean one thing:
"A bull market is likely starting."
However, he also said that every time this indicator has reached a similar value, the market has suffered a slight fall, and that it could start growing shortly afterwards. He also believes that the current index level could mean investors are investing in altcoins instead of in Bitcoin.
Fundstrat Global Advisors founder also thinks that the main cryptocurrency by market capitalization could now behave the same way as in the past, meaning it could reach new highs.
He added the current trend inversion could be related to the increase in the number of active Bitcoin wallets.
Why it is important
- Bitcoin's price has registered a significant increase over the last weeks. It hovered around $4,000 at the end of March, while less than a month later it is trading above the $5,000 mark.
- The users' interest in the crypto is also increasing, since Google search requests for Bitcoin have recently tripled boosted by its price jump.
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