Predicting when to buy or sell bitcoin or any other cryptocurrency is something which every trader will like to know. In fact, the most successful traders are those who turn to know when to buy or sell their cryptocurrencies. Of course, this is a skill which is not easy to come by as you will need to learn and know how to read crypto charts which is not only boring sometimes, but also difficult. According to a new research, when to buy or sell cryptocurrencies can be predicted even much easier. He thinks to predict Bitcoin’s price, traders can look at Google search trends.
According to crypto analyst Nick Colas, it can be easier to predict “Bitcoin’s next move” by simply looking into google search trend and wallet growth. According to a recent study, the Bitcoin article on Wikipedia had 15,026,561 visits in 2017. This is also the year when Bitcoin and cryptocurrencies hit their highest levels ever.
According to Google search, the term “how to buy Bitcoin” was on the 3rd place of “how to” searches. Nick Colas thinks the increase in the number of search terms related to Bitcoin is one of the main reasons its price increased drastically in 2017. For example, on December 17, 2017, Bitcoin hit its record high of $19,843 and that could also be linked to the increase in the number search information regarding Bitcoin that day.
“By looking at the number of people who search for the word ‘Bitcoin’ on Google, we get a pretty good sense of where the interest is.
“The search trends show the same price trends. Just after Thanksgiving, the sharp rise in bitcoin search trend saw a double in wallet growth.”
The big question is, did Bitcoin’s price influence the search trend or did the search trend influence the price? There is some room for discussion here. However, with such findings, speculators with little to no skills in reading charts can have an alternative to knowing when they can buy or sell cryptocurrency than just speculating.
What are your thoughts on these findings? Do you think Google search trends can be a reliable way to know when to predict Bitcoin’s price?
Let’s know your thoughts in the comment section below.