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This Bitcoin Metric Suggests Potential Price Rally, Here's Why

Mon, 11/14/2022 - 11:43
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Arman Shirinyan
One of most popular Bitcoin indicators is flashing possibility of long-term reversal
This Bitcoin Metric Suggests Potential Price Rally, Here's Why
Cover image via U.Today

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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.

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.

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.

Ethereum Suddenly Spikes by 7.6%, Reaches $1,260

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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.