Using Google Trends to detect Bitcoin price bubbles

[tyz]

Had a good read on coindesk about how you can detect Bitcoin price bubbles using Google trends.

An excerpt:
Simply put, Google Trends is a great way to track the growth of active bitcoin users. The search 'BTC USD' serves as a proxy for the engagement of active bitcoin users as they check the daily price. In the chart above, the baseline denotes the exponential growth of active users, while the height above the line illustrates their engagement levels. When engagement levels run high, bitcoin users are in party mode, checking the price daily of their precious coin. If engagement levels are too high, that's when we are in a price bubble, and it's a good time to sell.

[davis196]

Had a good read on coindesk about how you can detect Bitcoin price bubbles using Google trends.

An excerpt:
Simply put, Google Trends is a great way to track the growth of active bitcoin users. The search 'BTC USD' serves as a proxy for the engagement of active bitcoin users as they check the daily price. In the chart above, the baseline denotes the exponential growth of active users, while the height above the line illustrates their engagement levels. When engagement levels run high, bitcoin users are in party mode, checking the price daily of their precious coin. If engagement levels are too high, that's when we are in a price bubble, and it's a good time to sell.

Very interesting idea.
I`m not very familiar with Google trends.I quess that they use Google keyword traffic data to measure the engagement about a sertain topic.
Wouldn`t be great, if there was a free online tool to measure social media engagement gathering data from Facebook,Twitter and Linkedin. 
Perhaps the engagement levels about bitcoin aren`t always related with the bitcoin price?

[HabBear]

Nice comment here!

Does Google trends allow us to put in the moving average guardrails? The target range lines that denote bubble territory?

The only problem I have with these charts is that it's hard to tell when the underlying asset is on a true run or not. If you were to compare the chart before a huge run, breakout and after you'd see the trajectory of the trends slightly different, which could influence buying behavior...making one believe they were buying into a bubble and not a healthy bull market.

[xIIImaL]

Had a good read on coindesk about how you can detect Bitcoin price bubbles using Google trends.

An excerpt:
Simply put, Google Trends is a great way to track the growth of active bitcoin users. The search 'BTC USD' serves as a proxy for the engagement of active bitcoin users as they check the daily price. In the chart above, the baseline denotes the exponential growth of active users, while the height above the line illustrates their engagement levels. When engagement levels run high, bitcoin users are in party mode, checking the price daily of their precious coin. If engagement levels are too high, that's when we are in a price bubble, and it's a good time to sell.

Very interesting idea.
I`m not very familiar with Google trends.I quess that they use Google keyword traffic data to measure the engagement about a sertain topic.
Wouldn`t be great, if there was a free online tool to measure social media engagement gathering data from Facebook,Twitter and Linkedin. 
Perhaps the engagement levels about bitcoin aren`t always related with the bitcoin price?

Everyone looks for traffic and views their site. That's why they are paying in dollars to manage with seo and semi services. If the trend up Twitter or in Google search trend it good for us right! We will get more involved in bitcoin and may get good adoption for it.

[Supercrypt]

We cannot forget bitcoin was the largely searched technical term in 2014 and bitcoin was the worst performing currency in 2014.

I just wonder how the trends will forecast the sentiments of traders. Maybe these google trends could be utilized to identify the hot happening around the world and I am not finding it will work similar to technical analysis tools on predicting the directions of bitcoin prices.

[ImHash]

Google a multi-billion dollar giant company provides very interesting services and applications and one of such services is google trends where it analysis and processes the information were asked of google search engine and other apps containing some specific keywords in some periods of times by people from different countries and can only be used as just one of the reliable and trustworthy sources of said information.
but with bitcoin having many darknet users, users of other search engines and service providers yet what google is providing is just tip of the iceberg.

[buwaytress]

So, anyone willing to run a test or two on this theory? If it holds true, then it should also see some self-fulfilling movement, being that the actual use of Google Trends should itself also contribute to pushing the trend. Not sure if this method would meet saturation quickly if everyone tried it though.

[BillyBobZorton]

Thought luck, I dont see a clear correction. If it was as easy as buying when the google trends go up then we would all be rich. In any case google trend goes along with the price since most people are idiots that only follow price.