Analysis shows that investors' interest in buying bitcoin seems to lag behind the price increase of this cryptocurrency, which means that investors do not want to buy until the price of the currency rises. A closer look at the trend search over the past month reveals that the term "buy bitcoin" often only attracts people's buying interest after the actual price of bitcoin has risen.
The word "buy bitcoin" follows the bitcoin price
According to Google Trends , the search term "buy bitcoin" has only increased in the past month after the price has risen.
- Bitcoin fluctuates within a narrow range, waiting patiently for the market to restart
- Morning market: Bitcoin broke through 12,000 US dollars to keep going up, even the market is just around the corner
- Bitcoin's biggest benefit this year - Bakkt
- Bitcoin once fell below $ 8,600, and BitMEX's bitcoin settlement exceeded $ 150 million
- QKL123 data analysis 丨 Under the crisis, it is strongly associated with US stocks. When will Bitcoin get rid of it?
- The Bitcoin panic index is low, and Coinbase data says that whales are buying.
As can be seen from the chart, people's interest in "buying bitcoin" peaked on April 3, and the Google Trends index reached 100. This is the peak popularity of this particular term for the selected time period.
On the same day, the price of Bitcoin was about $5,300, a 26% increase from $4,200 two days ago.
On the other hand, comparing the two charts, it can be seen that if the price of Bitcoin falls, the interest in buying Bitcoin will fall.
Signs of FOMO
In other words, people seem more willing to buy when bitcoin rises, not when it falls.
This may indicate that people just don't want to miss a further price increase, also known as missing fear (FOMO). When bitcoin prices plummet, interest in buying bitcoin will fall, and this indicator can also reflect the psychology of investors, chasing up and killing.
In addition, the top five countries where Bitcoin search volume has tripled after the rise are Nigeria, the Netherlands, South Africa, Austria and Switzerland.
Still showing signs of bottoming out?
On the other hand, supporters believe that the BTC/USD may eventually bottom out.
A new report issued by Bince, a cryptocurrency exchange, shows that cryptocurrency prices have steadily recovered after a low of 2018, and people believe that the market has bottomed out.
In any case, the rising potential of Bitcoin is noteworthy, and the current block reward is halved by only 405 days. In addition, unlike the US dollar or other legal currency, the issuance of Bitcoin is transparent and predictable, but it is scarce in the digital arena. The purchasing power of the French dollar and other legal currencies is steadily declining and will continue to decline.
As the saying goes, low buy and sell high.
So, as bitcoin prices once again show signs of bullishness, it is reasonable to buy some bitcoins now. Because if based on Google's data, most people may be willing to buy Bitcoin for $30,000 or more in the future, instead of the "low" of $3,000.
Note: Investment is risky and readers should be cautious. This article does not constitute investment advice.