Bitcoin Predicted to Dip Again Before Upcoming Rally
The Dutch National Bank’s policy advisor, Joost van der Burgt, claims that Bitcoin values are expected to undergo another correction prior to starting the upcoming midterm rally. He also explained similar patterns between BTC prices and Google search results for related keywords during May 2017 to February of this year. However, that correlation has not been the case in recent months. Burgt stated that previously, any news related to Bitcoin whether it was a negative or positive report, facilitated the rise in Bitcoin prices. However he believes that nice futures was introduced, the Bitcoin bubble may have been downsized before reaching a point in which the-so-called bubble could have burst entirely.
Is Another Price Drop Possible?
Within the past two months, BTC prices have risen twice to an equivalent of $10,000 from a support level of $6,000. Both price spikes were a result of a sudden volume surge bringing the price of BTC above $7,000 within a day. However, as Burgt suggested, Google analytics and BTC values have not followed the rising trend since February 2018. Despite the price spike to $10,000 this April, Google search results showed a downward trend regardless of market optimism overall.
In this case, arguments have been made that due to Bitcoin’s stability within a higher price margin, keyword search terms related to BTC were no longer as frequent as last year. As the demand for BTC reached its peak last December with values as high as $20,000, the hype surrounding cryptocurrencies have since declined. According to Burgt’s analysis, Bitcoin price values and keyword search trends had been perfectly matched until 2017’s end. During that timeframe, news reports, social media platforms and TV networks had all taken part in circulating reports regarding the introduction of cryptocurrency particularly in regions such as Japan and South Korea who hosted national debates on the subject.
Analytical Correlation is Unlikely
Researchers believe that regardless of Bitcoin’s future price values, it is not likely that search trends will represent the same intensity of interest as it had been since its initial introduced into mainstream media. Burgt added that Bitcoin’s famous growth spurt and rise in popularity spooked investors causing a domino effect of Bitcoin sales.
The trends studied from search analytics on Google and the subsequent values of BTC have no longer maintained that correlation since 2018 began. As the international market settled down since the all-time cryptocurrency highs of 2017, researchers believe it is less likely they will come across the same trends reflected by Google keywords and Bitcoin’s price for the near future.