Bitcoin (BTC) price and search scores on Google Trends are fairly correlated metrics, as a growing market interest for the leading cryptocurrency can be reflected in both higher prices and more searches for ‘Bitcoin’ on Google.
In the last two years, Bitcoin has traded in a downtrend, going from as high as $69,000 in November 2021 to as low as $15,400 per BTC in November 2022. Currently, Bitcoin is trading in a consolidation range from $24,700 to $31,800, since March 2023.
Despite the year-over-year price recovery from this cycle’s lows and historical correlation within Bitcoin’s performance on Google Trends, the search score for the word ‘Bitcoin’ reached new lows on October 12, currently resembling 2020’s levels of interest.
Google Trends scores for ‘Bitcoin’. Source: Google
Will BTC price follow Google Trends?
As mentioned above, BTC price and Google Trends’ scores usually follow the same direction. Nevertheless, divergences often suggest a trend reversal for one of the two metrics.
In 2020, Bitcoin’s price was trading in an uptrend, while Google’s scores were reaching lower levels. This divergence sparked the last 4-year cycle bull market, with a new correlation among both indicators that lasted until March 2021.
BTC 1-week price chart. Source: TradingView
Interestingly, the following divergence occurred at BTC’s all-time high in November 2021, with a shy 36 score on Google Trends. This bearish divergence drove prices downwards, again registering a new correlation with interest in ‘Bitcoin’ searches continuously dropping until the time of publication.
In this context, it is possible that the cryptocurrency market is experiencing another divergence of low interest, but a slightly growing uptrend for BTC perceived value, although yet mostly consolidating.
There is still no consensus on Bitcoin’s next moves. Some technical analysts point towards building momentum for BTC according to the 4-hour RSI, while macro strategists believe Bitcoin may lead a great reset following other commodities.
Additionally, just two months ago Finbold reported a surge for the term ‘buy Bitcoin’ on Google Trends, evidencing a growing demand for this specific action, which could also boost demand for BTC in the spot market.
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