In a previous article, we identified how the founder of Bollinger bands, John Bollinger used the indicator to predict a Bitcoin price explosion. Also, we noted how indicators do not stand alone during market analysis, with suggestions of the compliance by other indices. Now we have it, as other factors have been identified that support the prediction of Bollinger.
People are Searching “Buy Bitcoin”
A key indicator that is supported with strong historical evidence when it comes to Bitcoin price is Google Trends. Over the years, whenever there was a significant rise in the search for ‘Buy Bitcoin’, the cryptocurrency responded with something significant. This is a development that was pointed out by popular crypto analyst, CryptoKea on Twitter.
1/ Googling for "Buy Bitcoin" just reached a 7 months high (Score 9). The long-term upwards trend is undeniable. The last time the score reached a 10 was:
Nov '13 (bull top),
May '17 (price on parabolic run-up),
Jun '19 (medium-term top)
>Feb '20 (price on parabolic run-up?) pic.twitter.com/tkdXIEvM3Q
— CryptoKea (@CryptoKea) January 20, 2020
As shown above, the spikes in the ‘Buy Bitcoin’ google trend has coincided with the beginning of its most significant price rallies. November 2013, May 2017 and June 2019 are the notable historical moments that support this stat. Now we have another spike in google trend, what should we expect?
There are several predictions about an imminent surge in Bitcoin price. Normally, this doesn’t come as a surprise because of the economics of the cryptocurrency, especially with the expected increase in adoption makes this suggestion. Of more interest is the extent of this anticipated rally and when it could happen.
Other Reasons Why Bitcoin May “Moon” in 2020
Many factors are suggesting 2020 as the year when Bitcoin could post some outrageous prices. Increased adoption (as mentioned above), reward halving and increased use cases are some of the reasons why the demand for Bitcoin is expected to increase. It is this expected increase in demand that will be reflected in price. Marrying this with the spike in google trend for amount of “Buy Bitcoin” searches, justifies the insinuation that there is an increased level of interest around Bitcoin.
An earlier report on NewsBTC provided the opinions of popular Bitcoin analyst, SatoshiWolf who outlined three macro reasons why BTC will explode in 2020. Here are his reasons:
- Firstly, the recent price decline that Bitcoin has seen from $14,000 to a low of $6,400 has been marked by decreasing volume, which he claims is “bullish.” Indeed, falling volumes in a downtrend would indicate that the sellers are gradually losing control.
- Secondly, BTC surged off the key $6,400 macro support level, which has been a level of utmost importance since early-2018, in December on high buying volumes. This indicates bulls are in control.
- And lastly, the block reward reduction for Bitcoin, which will decrease the inflation rate of the cryptocurrency by half, is on the horizon (May 2020). This event has been found to be correlated with upswings in the market.
Time to Pay Attention
Bitcoin remains the most popular cryptocurrency in existence today. As at the time of writing, the pioneer cryptocurrency retains 66% dominance over the $232.4 Billion cryptocurrency market. This explains why the price direction of Bitcoin always has an effect on the altcoin market as well. Bitcoin is still the big brother.
Everyone is watchful, traders and investors alike. The market appears to be set for something big, just as various indices are reflecting. This is a time to pay close attention to one’s portfolio in order to avoid being left at the station while the train begins to shift gears.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.