Crypto search trends are finally trending up again after a “search term correction” started in the winter as crypto prices started to drop. Although its too early to say for sure, this is potentially a very bullish sign when considered alongside the price and volume data.
UPDATE 6-26-18: Nothing much happened after that little spike in search interest. We are probably a ways out from seeing any real revival of search interest. I think in retrospect this was worth noting, but there was no follow through and thus nothing to get overly excited about.
NOTE: The above charts compared search volume for the term “cryptocurrency” with Bitcoin’s price chart. In my opinion comparing these are the best way to find a correlation between interest in crypto as a space and crypto prices as a whole (due to the mechanics of the crypto markets, where most alts react to Bitcoin on average, and how people search for things).
What I mean is this:
- Although price and volume trends have been waving up and down while gradually decreasing since January (see the Bitcoin chart, most crypto charts look like that essentially), search trends have mostly been in a hard downtrend for all of 2018 (see the chart).
- This uptick in crypto search terms (Cryptocurrency, Bitcoin, Coinbase, Ethereum, Litecoin, etc; see for yourself) is the first notable increase of 2018 in my opinion.
- The uptick implies not just increased interest in cryptocurrency from the previous week, but some increased interest by new users as well (new user focused terms like “how to buy Bitcoin” aren’t up as much as others, so this is likely a general renewal of interest more than a sign of new adoption).
- This uptick isn’t very impressive at the moment (let’s stress that, I am commenting on the first signs of a trend, not a well established one). However, when paired with an analysis of price and volume action, the search trend in my opinion becomes more meaningful. Consider, daily RSI has been oversold recently, BTC’s price has been sitting in the mid-$6ks where there is a lot of support, we have potentially formed a triple bottom here in the mid-to-low $6ks, we are right back around the same price we were at before the whole pump of late 2017 over the news of “futures,” and Bitcoin has rallied hard a few times at these price levels (if only by a couple hundred dollars each time). If Bitcoin is going to rally for real, a time like this makes sense.
Although this uptick might not end up being noteworthy in the long run, in the moment I would say it should inspire a bit of hope that a new trend is forming where an interest in cryptocurrency ramps up again while at the same time prices recover.
To get back above the resistance levels formed in 2018 it will take a perfect storm… the uptick in search trends could be a very early hint that there is a storm coming.