One of most popular Bitcoin indicators is flashing possibility of long-term reversal
A number of market and on-chain metrics are used by analysts to predict the movement of bitcoin in the near future. However, there are several common indicators that are widely used among retail investors because their accuracy and usefulness remain at a high level compared 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 upcoming market reversals. During the 2021 rally, retail investor interest in bitcoin fell sharply, with the number of queries in search engines falling below pre-ATH numbers. Shortly thereafter, the price of the first cryptocurrency fell into a 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 think
Interestingly, this indicator has also acted as a leading indicator for upcoming market reversals. During the 2021 rally, retail investor interest in bitcoin fell sharply, with the number of queries in search engines falling below pre-ATH numbers. Shortly thereafter, the price of the first cryptocurrency fell into a downtrend.
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.
