Bitcoin Forum

The latest Google Trends data suggests that the downward trend in Bitcoin price may have found a bottom and could be reversing to the upside.

GOOGLE TRENDS: A HARBINGER FOR BITCOIN PRICE?

Bitcoin price hit its all time high in mid-December, touching $20,000 USD. Thus, it will come as no surprise that the amount of people searching for ‘Bitcoin’ on Google also peaked at the exact same time.

Trends data is an anonymous, categorized, and unbiased sample of Google search data. It tracks trillions of searches per year ,  making it one of the most useful, real-time data indicators of human interest by region and category.

n fact, the term “Bitcoin” was the second most popular search for global news in 2017. Interestingly, last January’s data indicated that the cryptocurrency was due for a major breakout for the year.

The harbinger was correct, albeit a short dry-spell in the first two months (similar to what we’re seeing right now).

The Trends 2013 record was broken in May of last year, which was the exact time when Bitcoin price began its parabolic climb to new all-time highs in December.

OUT OF THE BEAR-RIDDEN WOODS?

We’re currently seeing a repeat of what happened in the beginning of last year. The Trends chart (https://trends.google.com/trends/explore?q=bitcoin) shows a reversal to the uptrend for interest in Bitcoin for February

Comparing the above chart to Bitcoin price, which likewise reversed 40% from around $6,000 USD, and the resemblance is striking.

So, if you believe that price follows interest, and therefore, more buyers and greater volume, there’s a good probability that Bitcoin could test new all-time highs in the next few months as some market analysts have predicted.

“I think we will have Regulators stirring up the marketplace several times a week for the next two months until the SEC comes out with a direction and institutions are starting to invest,” David Drake, Chairman of LDJ Capital, told Bitcoinist in an interview last week.

“At that point, prices will go off and I think that’s going to happen around March and April,” he added.

Besides lower fees and strengthening fundamentals due to some promising upgrades (e.g. Lightning Network) expected this year, another bullish factor to consider is that the recent sell-off has shaken out the so-called weak hands. Indeed, the January correction may have restored some much-needed balance to a red hot cryptocurrency market.

Now, an influx of capital from long-term holders (or HODLers) and believers in the technology, as opposed to FOMO-driven speculators, could serve as a launchpad towards new all-time highs.

http://bitcoinist.com/google-trends-bitcoin-price-bottomed/

Except that people are able to game it quite easily.
If people indeed value the Google Trends data, people are also incentivized to manipulate it.

E.g. you could run a botnet and simply let it perform millions of searches for the
search term of your choice on the computers of unwitting users.

Buying or selling BTC based on Google Trends data is a terrible idea.
You should invest in Bitcoin if you either believe in the long-term future of it or
have some reason to believe that it will go up in the short-term.

it is not just the Google Trends data,many tech analysis and trading experts are saying the same
there was support at around 7.000$ according to them but the price crashed even further,to 6.000 at one point
then a correction followed,it is normal for any market,even such a volatile and unpredictable as the cryptocurrency market
also Trends can be influenced by manipulators,true but this is just an instrument-it does show the result of such a manipulation anyways

besides the prognosis was correct,we seemed to have found the bottom,
the price is going up steadily,probably going to stabilise at 10.000 mark or around that

Its difficult to predict price using trends data , this market is very unpredictable and is dependent on news