The Google trends data for the search term “Bitcoin” shows that the curve today is similar to that of the 2017 bull market.
Can Google Trends Predict A Bull Market?
As pointed out by Twitter user Bitcoin Archive, the Google Trends graph for “Bitcoin” matches up with the last leg up for the 2017 bull market.
Here is how the Google trend chart in question looks like:
Trends for the search term "Bitcoin" today compared to 2017 | Source: Google Trends
As you can see in the above chart, the oval marks the region from 2017 that seems to be similar when compared with today (marked with the circle).
Related Reading | How El Salvador Could Issue Digital Bond To Strengthen Bitcoin Law
2017 was a historic bull run where the price of Bitcoin rose from $900 at the beginning of the year to $20000 in December of the same.
However, a similarity in these Google trends may not mean a bull run is imminent.
Here is how the Google trends chart looks like for the search term “crypto“:
Trends for the search term "crypto" in the last 5 years | Source: Google Trends
From these trends, it indeed looks like the 2017 and the current periods are indeed similar. However, these charts are different in that the search trends for the term “crypto” make it look like the current bull run is over.
As such, there doesn’t seem to be a real relationship between Google Trends curves and the nature of the bull run.
Related Reading | How the Great Bitcoin Miner Migration Has Impacted the Market
Though, it doesn’t mean Google Trends are completely useless. They do show the interest in Bitcoin and crypto, more of which should be positive for the future price.
For example, the peaks that occur in 2017 and 2020 were indeed accompanied by high price swings as a higher price attracts more people. And more people investing means a better price overall.
However, the high price itself couldn’t be predicted using Google Trends.
Bitcoin Price
At the time of writing, BTC is trading around $33.6k. It’s down around 1.2% in the past 7 days, while compared to last month, its value is down almost 7%.
Here is a price chart showing the variation in the value of Bitcoin over the past 6 months:
BTC's price seems to have stagnated | Source: BTCUSD on TradingView
Bitcoin had a 50% dip in price during May caused by the reiteration of China’s Bitcoin ban. Subsequent crackdowns by the nation on crypto mining farms in big miner hubs like Sichuan have also made the cryptocurrency drop some.
BTC hasn’t improved since the crash, and it’s hard to say when things might take the turn for the better. However, it has also not been crashing further. For now, it seems to be in a state of stagnation.
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July 06, 2021 at 01:31AM
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