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?