Bitcoin Currencies News & Updates

On The Way To The Moon. Because Of This …..

Warren #Buffett, the Oracle of Omaha, once gave some investing #advice that is incredibly timely now that #bitcoin (BTC/USD) #skyrocketed to a fresh 2019 high of $8,350 on Coinbase:

“To be a successful investor, you must divorce yourself from the fears and greed of the people around you.”

The unexpected #rally may not be getting the media #attention it deserves but, our #analysis shows that people are beginning to hop on the #bandwagon.

Unfortunately, they only do so after #bitcoin is most likely about to conclude a #rally. In this #article, we show how many retail #investors buy only after the price surge #concludes.

BITCOIN CHARTS AND #GOOGLE #TRENDS DATA SHOW UNDENIABLE CORRELATION

In trading and #investing, it is always good practice to consider the #contrarian #stance. For instance, if the overall sentiment is #bearish, perhaps it’s an excellent time to be #bullish – and vice-versa. We do this all the time because the herd is rarely #correct. It seems that Google #Trends supports our line of thinking.

We plotted the #interest for the search term “buy bitcoin” on Google Trends during the past 12 months, and #correlated it with bitcoin’s price action on the #weekly chart.

On the Google #Trends chart, we were able to mark nine points where there was a #spike or significant interest in the search term. For your #reference, these are the #dates when the search “buy bitcoin” #bounced:

  1. July 22 – 28, 2018
  2. Sept. 02 – 08
  3. Oct. 14 – 20
  4. Nov. 25 – Dec. 01
  5. Dec. 30, 2018 – Jan. 05, 2019
  6. Feb. 03 – 09
  7. Feb. 24 – Mar. 02
  8. Mar. 31 – Apr. 06
  9. May 05 – 11
“buy bitcoin” on Google Trends

Dates when people showed interest in the #search term “buy #bitcoin” on Google Trends | Source: Google Trends

We then #cross-referenced these #dates to bitcoin’s weekly chart on #Coinbase. We discovered that there’s only significant #interest in the #cryptocurrency either during a rally or after a #bounce.

#Bitcoin posted green weekly #candles in eight out of the nine dates listed above. There was only one red #candle, and that was in the #week of September 3rd. At that time, the #market was blowing off #steam after going above $8,000.

bitcoin price

Bitcoin weekly chart suggests FOMO. | Source: TradingView

The #correlation between public interest and #price action is undeniable. It #indicates that people are only interested in buying bitcoin after a price #surge. The link becomes more #evident when you look at the #relationship between the two variables in the last seven #days.

Interest in “buy bitcoin” increasing in the last seven days

Interest in “buy bitcoin” increased significantly in the last seven days. | Source: Google Trends

In this sample, the “buy #bitcoin” search term #peaked on May 12th and May 14th. If you look at bitcoin’s daily chart, these are the dates when the #market appears to be #hyper bullish.

Bitcoin looks ultra bullish and people are taking notice

Bitcoin looks ultra bullish, and people are taking notice | Source: TradingView

DON’T GET TRAMPLED WHEN THE CRYPTO BULLS STAMPEDE

Considering all the #data, there appears to be a link between the rise in price and the #surge in interest in buying bitcoin.

Of course, #correlation doesn’t mean #causation. However, there is some evidence to suggest that #FOMO likely drives the general #public.

If this is true, then the #legendary #Warren #Buffett is right. Here’s a slight #modification to what he said: “You must divorce yourself from the fears and greed of the” herd “to be a successful #investor.”

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