Wall Street strategist Thomas Lee has formulated a new contrarian index, called the Bitcoin Misery Index, BMI, which can be helpful for traders. Lee is bullish on Bitcoin and has retained a year-end target of $25,000, which results in a gain of more than 160 percent from the current levels.
We believe it’s better to buy only after the cryptocurrencies stop falling because in a bear market people dump their holdings at ridiculous prices. So, let’s check if any of the digital currencies has formed a bottom.
Bitcoin broke below the critical support of $9,500, yesterday, March 09, and hit an intraday low of $9,000.02, which is just below the 50 percent Fibonacci retracement of the recent pullback from $6,075.04 to $12,172.43.
BTC
The bulls bought the dip and pushed prices back above $9,500. The BTC/USD pair is still not out of the woods because it is still trading inside the descending channel.
If the bulls sustain above the $9,500 levels, a range bound action is likely to ensue where we can expect the bulls and the bears to battle it out between $9,500 and $12,200 levels.
On the contrary, if the bears again break below yesterday’s low of $9,000.02, the price might fall towards 61.8 percent of the $8,404 retracement level