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Here’s One Data Point That Suggests Bitcoin (BTC) Has Bottomed Out

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Here is an interesting one. Take a look at the price of bitcoin as illustrated on the bitcoin price chart (taken from CoinMarketCap) below.

BTC Chart

BTC Chart

The chart shows the action that has been covered across so many of the major news media outlets over the last six weeks or so, with bitcoin sliding from highs at more than $20,000 a piece to current levels in and around $8000.

The 60% decline is one that has come as painful for many longer-term holders but the pain that said holders feel is no doubt insignificant as compares to that felt by anybody that picked up an exposure in or around mid December pricing and have subsequently ridden price down throughout the first half of the first quarter of this year.

Anyway, now take a look at the second chart, this one taken from Google’s Trends platform.

Google Trends Bitcoin

Google Trends Bitcoin

The chart illustrates interest over time in bitcoin, with the metric based on the frequency and volume with which people search for it through Google’s search engine. Official numbers suggest that around 60% of search traffic goes through Google but, in reality, it’s probably considerably higher than that.

Anyway, whatever the numbers, interest over time was at 12 (out of a possible 100) back during the first week of October. By the week of December 17, this had risen to 100 (so, representative of peak interest). That suggests an increase in the wider market attention of around 700% across what is essentially a fraction of bitcoin’s lifespan.

Almost immediately subsequent to this interest peaking, however, search volume fell off a cliff and currently sits at around 49, meaning we have seen a decline of around 100% from December.

So why is any of this important?

Well, it’s reasonable to assume that the uptick in attention and interest during the final quarter of last year is comprised primarily of mainstream attention as opposed to those already familiar with the space increasing the amount of times they type bitcoin and its related terms into Google.

In turn, it’s equally reasonable to assume that the subsequent downturn in interest during the first couple of months of this year is the removal of this same portion of global search volume from the picture.

So, taking these two assumptions into consideration, we can make a further assumption based on price. Specifically, that the portion of the inflowing volume that resulted in the bitcoin price running up to $20,000 and above derived primarily from the increase in mainstream speculation (as opposed to existing holders adding to their positions), at least for the main part.

What does this all mean?

We think that, at current prices, and taking into consideration the recent slight upturn we have seen in the markets, the portion of capital that flowed into bitcoin and pushed price up has now flowed out of the market, meaning balance is restored in the sense that the vast majority of the capital that now supports price derives from long-term holders as opposed to fly-by-night speculators.

In turn, we think that this level represents the level at which it’s perfectly reasonable to assume price should start turning around.

It’s unlikely that we’re going to see a run towards $20,000 short-term since that would mean the volume that entered (and then exited again) entering the market once more. However, within a six-month period, say, the traction that pushed bitcoin towards current levels during the first 6 to 8 months of 2017 could easily push BTC towards $15,000 plus between now and September 2018.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


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Bitcoin

Bitcoin Grows Beyond $4,000

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Bitcoin grows beyond $4000
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Bitcoin (BTC) is starting to make waves again, and while they are still small, investors around the world are welcoming the positive development. The number one cryptocurrency has just breached the $4,000 mark, and while this is still five times lower price than it was in early January 2018, it is over $800 higher than in early December 2018.

At the time of writing, Bitcoin price is at $4,048.60, after the coin experienced a 5.53% growth in the last 24 hours. Meanwhile, its market cap sits just above $70.5 billion, while the coin’s daily trading volume is at $5.7 billion.

Bitcoin has had a rough 2018, just like the rest of the crypto market. In fact, the coin is so influential that it usually dictates the market behavior, whether positive or negative. Right now, the rest of the market follows the positive trend, with all of the top 10 cryptocurrencies currently trading in the green, while only a few among the top 100 coins are experiencing minor losses.

The largest gainers among the top 10 cryptos by market cap are Litecoin (LTC) with a 7.64% growth, and Stellar (XLM), which is growing by 7.27%.

Bitcoin’s behavior in the new year has mostly been positive, which is a trend that originally started on December 17th, 2018. After a month and a half of constant losses, which have brought…

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Bitcoin

What Will Happen First: BTC 2k or 5k?

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2018 has ended, and while there was no enormous surge that investors were hoping for, it still ended with a bit of hope for those wishing to see Bitcoin BTC rise.

Only two weeks before the end of 2018, BTC was in a desperate position, with the value of its coin being at $3,200, threating to drop even lower. However, a sudden surge occurred on December 17th, which returned $1,000 to its value. And, since it lost approximately $400 since then, the final days of 2018 have still seen BTC well-above its lowest point of that year.

Now, 2019 has arrived, with traders and investors wondering what will happen next? Is BTC going to drop to $2,000? Will it rise back to $5,000? Will the bear market expand to this year as well, or is the market ready for a proper bull run this time?

The answer, once again, remains uncertain. The problems with scalability may be reduced significantly soon, but high volatility remains an issue. Even the slightest shift can have enormous consequences for the entire market, and any news can impact the BTC price, no matter how big or small, or if positive or negative. To stop its further drop, BTC had to find a balance. However, this balance is more fragile than ever, and the price is expected to move very soon.

What to expect…

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Bitcoin

Is Bitcoin Spiraling Down to a New Bottom?

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Bitcoin (BTC) appears to be in yet another free fall, with no indication when or where it will stop, and investors are wondering if the coin is going to breach its recently identified bottom once again.

Bitcoin behavior in 2018

Bitcoin has had an eventful 2018, with countless ups and downs in the last 12 months. As many are aware of at this point, the BTC started this year with an all-time high, when it reached $20,000 per coin. The situation quickly took a turn for the worse, and in mid-January 2018, the market crashed. As a result, BTC started losing value, and over the following months, it lost over 30%.

The free fall stopped at around $6,300, which is where the coin managed to stabilize for several months. At this point, it often had small surges which provided investors with hope that the coin has reached a bottom. Many believed that it will stop dropping and that it can only go up from this price. Then, in November 2018, the market crashed yet again, and BTC breached its bottom.

It continued its downward spiral until it reached $3,200, which experts identified as the new bottom. Once again, investors were hoping that this will be the end of Bitcoin’s value loss and that the market will switch from bearish to bullish. That also seemingly happened on December 17th,…

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