Bitcoin Could Fall More Before Rally

Joost van der Burgt, a policy advisor at the Dutch National Bank, said that the Bitcoin price will endure at least one more correction prior to initiating the next mid-term rally.

Burgt demonstrated the correlation between Google search activity of the keyword “Bitcoin” and the price chart of BTC, which showed striking similarities from May of last year to February of 2018. But, over the past seven months, Bitcoin has not reflected the trend of Google search.

“Every time bitcoin was in the news, be it positive or negative, the price went up accordingly. My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely,” Burgt said.

Is a Major Drop Really Likely?

In April and July, the price of BTC spiked to $10,000 and $8,500 respectively subsequent to recovering from the $6,000 support level. Both spikes were triggered by an abrupt surge in volume and within a day, on both occasions, the price of BTC surged from $6,000 to over $7,500.

But, as seen in the chart provided by Burgt, the correlation between Google search trend of Bitcoin and the BTC price chart has dematerialized since February. In April, when the price of Bitcoin achieved $10,000, the search trend was on a continuous decline, despite significant optimism demonstrated by the market at the time.

Chart provided by Joost van der Burgt and the Dutch National Bank

It can be argued that the stability in the price of Bitcoin and its lack of movement in the lower price range led the popularity of the keyword BTC on search engines to subside. Because the demand for Bitcoin was so intense during December of last year when the futures market around Bitcoin was introduced and BTC achieved an all-time high price at $19,500, interest towards cryptocurrencies have declined since then.

Burgt acknowledged that the BTC price and Google trends for the keyword Bitcoin were almost a perfect match until the end of 2017.

In the latter half of 2017, newspapers, mainstream media outlets, and television networks were all actively reporting about the cryptocurrency sector with some major regions like South Korea and Japan broadcasting debates on digital assets on national television.

Even if the Bitcoin price recovers to $20,000 in the months and years to come, it is unlikely for Google trends to demonstrate similar interest as 2017 was the year Bitcoin was introduced to the mainstream for the first time at a massive scale.

According to Burgt, the unprecedented growth rate of Bitcoin and rapidly rising interest led investors to become scared about the mania round cryptocurrencies, forcing investors to sell the asset.

“If the buzz is everywhere, it doesn’t matter exactly what the news is about… nobody wants to miss out and everybody’s trying to get a piece of it. It wasn’t really panic, it was more of a scare,” he added.

Lack of Correlation

The correlation between Google trends and the BTC price faded in early 2018, as the global market moved on from the 2017 highs of cryptocurrencies. Hence, it is unlikely that the trend shown by Google will be reflected by the price chart of Bitcoin in the upcoming months.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN’s crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.


Author: Joseph Young

Source link

Related posts

17 Thoughts to “Bitcoin Could Fall More Before Rally”

  1. 醫學美容-微份子-黑曜石-cosmetic-wiki

    梅根熱潮持續!大婚時用上的復古跑車宣佈重推 – STYLE-TIPS.COM Meghan Markle 與哈利王子的童話式婚禮雖然已是 3 個月前的事,但大…

  2. Football Solutions UEFA EURO 2008 - History - Georgia-France

    Liverpool have started the new Premier League campaign with 10 points from a possible 15, the latest of those coming in an impressive 2-1 victory over Chelsea at Stamford Bridge on Friday. Liverpool building ‘something special’ under Jurgen Klopp, says summer arrival Georginio Wijnaldum

  3. Football Solutions Patrizia Panico (Italy) - UEFA Women's EURO - nav_

    Ahead of another weekend of the Barclays Premier League, Sportsmail brings you the latest squad news, odds and stats on every top flight fixture as it breaks. Premier League team news, odds and stats from every match ahead of the weekend

  4. Abdul Ogara

    Hi there, I found your blog by means of Google while searchingfor a comparable subject, your web site got here up, itlooks good. I have bookmarked it in my google bookmarks.Hi there, simply changed into alert to your weblog through Google,and found that it is really informative. I’m going towatch out for brussels. I’ll appreciate if you proceed this in future.Many people can be benefited out of your writing. Cheers!

  5. England's dreaming? - News

    Belgium’s medical staff have allayed fears of a lengthy absence for Marouane Fellaini and revealed he can return to action straight after the current international break. Lucky break: Moyes boost as Fellaini can return for United straight after internationals

  6. Stevan Jovetić

    QPR are still struggling to reduce their massive wage-bill with Djibril Cisse failing to secure a move away from the club back to Monpellier. QPR’s Cisse fails to get Montpellier move after chairman slams striker, saying: ‘I don’t want a guy who plays DJ in bars!’

  7. Fortune Games New Zealand

    … [Trackback]

    […] Read More on to that Topic: […]

  8. retail experience solutions

    … [Trackback]

    […] Find More Info here on that Topic: […]

  9. สล็อตแตกง่าย

    … [Trackback]

    […] Find More Information here to that Topic: […]

  10. Esport

    … [Trackback]

    […] Read More here to that Topic: […]

  11. บาคาร่า ขั้นต่ำ 5 บาท

    … [Trackback]

    […] Read More here on that Topic: […]

  12. 셔츠룸

    … [Trackback]

    […] Read More to that Topic: […]

  13. สล็อตวอเลท

    … [Trackback]

    […] There you will find 65292 additional Information to that Topic: […]

  14. 케이웨이브컴퍼니

    … [Trackback]

    […] Find More to that Topic: […]

  15. Requête pour un Credit Hypothecaire Belgique - Des CreditsDemande De Credit Hypothecaire Belgique - Des Credits

    … [Trackback]

    […] Info to that Topic: […]

  16. how to join illuminati in austria free

    … [Trackback]

    […] Here you will find 67970 additional Information on that Topic: […]

  17. maxbet

    … [Trackback]

    […] Read More here to that Topic: […]

Leave a Comment