Bitcoin is above $40,000 after starting the new year below $30,000 and trading below $4,000 less than a year ago.
The asset’s trajectory has been „up only“ – but could the collapse of Google search trends for the first-ever cryptocurrency be a sign that the bullish uptrend is about to stop as well?
Bitcoin’s unstoppable bull run – not unstoppable after all?
The world is looking on in amazement at the recent Bitcoin Circuit rally and rising from under $4,000 to over $40,000 in just one year is no easy feat and has required the influx of over $500 billion worth of capital.
Institutions seem more than happy to pay tens of thousands of dollars per coin. Throughout 2019 and early 2020, analysts have used one particular signal to decipher whether or not a bull market had begun – and that is Google Trends.
In recent months, more and more people were searching for bitcoin on Google, but now the trend has apparently started to weaken, with searches for buying bitcoin cheap, for example, becoming fewer.
Google search trends are weakening, will price follow?
Is Google Trends a „poor man’s sentiment indicator“ as one chartered financial analyst and crypto investment manager claims?
Could flagging Google interest be a sign of a BTC correction?
Timothy Peterson of Cane Island Global Macro believes that with Google Trends breaking off, Bitcoin’s price will soon follow.
The cryptocurrency is in its second-strongest uptrend historically, easily outpacing 2017, which put the asset on the map in the first place.
Bitcoin reached over $40,000 yesterday
The recent rally has the potential to eclipse anything 2017 was capable of, and has already doubled the previous all-time high from this year. Even if the short-term trend collapses, the long-term trend is still pointing up.
There may also be more to the Google Trends collapse than Peterson realizes. Using Google as a barometer of sentiment will become less effective over time.
And why? Because more and more people know exactly what Bitcoin is and what it means – there’s less need to search for information about it.
Just because people no longer search for terms like „how to send an email“ doesn’t mean email is suddenly dead. At some point, the technology and the search for new information about the technology diverge and don’t look back.
At that point, the technology will be widespread enough to last for the long term. Is that where Bitcoin is now – or are things about to turn around?