There are plenty of market and on-chain metrics used by analysts to predict Bitcoin’s movement in the foreseeable future. However, there are a number of common indicators widely used among retail investors since their accuracy and usability stay on a higher level in comparison to other tools.
Search Trends is a social indicator that determines the number of searches related to the first cryptocurrency. Trends may include inquiries about Bitcoin itself or ways investors can receive exposure to it. The surge in Bitcoin’s popularity has always correlated with its strong price performance on the market.
Bitcoin searches are soaring. Silver lining?#BTC pic.twitter.com/2ZmtedajMx
— IntoTheBlock (@intotheblock) November 14, 2022
Interestingly, this indicator has also acted as a leading indicator for an upcoming market reversal. During the 2021 rally, the interest of retail investors in Bitcoin fell down rapidly, with the number of queries in search engines dropping below the pre-ATH numbers. Shortly after that, the price of the first cryptocurrency tumbled into the downtrend.
Rising interest in Bitcoin among retail investors is a positive sign for a market that was lacking fresh inflows required for the end of the downtrend.
Ads
Not what we might think
Unfortunately, there is a catch that might invalidate the signs mentioned above. The most recent FTX drama might be the only source of the massive surge in interest in Bitcoin and the crypto space in general.
Considering the negative connotation of the source of interest, the metric’s data should not be considered a sign of an upcoming surge on the market since the curiosity of potential retail investors will decrease overtime, leaving the industry in the state it has been in since December 2021.
Source: https://u.today/this-bitcoin-metric-suggests-potential-price-rally-heres-why