Correlation of Google Trends and Bitcoin Price

 

I know many people are calling for market manipulation. But here are some facts that apply to every all-time-high (ATH) we have had in the last few years. As soon as there is price action going up, many people on the sidelines FOMO and buy trying to get rich fast.

 

The image above is  a snapshot of the google trends for “buy bitcoin” and the price history of bitcoin.

These are the facts:

  • Majority of people who bought in dec/jan don’t even understand what bitcoin is
  • Majority of people who bought in dec/jan bought to “get rich quick”
  • Majority of people who bought in dec/jan don’t believe in bitcoin
  • Bitcoin goes down = Everything else goes down

This selloff is the result of these people being shaken out.

Now i’m not saying you should hodl through all the dips. A Risk/Profit taking strategy is necessary so that you dont end up with a -70% or more loss.

Check out my risk/profit strategy and why hodling is not always the best idea.

I feel like many people need to start reading more about what they are investing in, so that they see how much impact many projects will have on the global economy, logistics and workforce.
Instead of panicking right now because everything is crashing, try and learn about the projects that you bought. Read the whitepapers, test the applications that are being created and give the devs some feedback.
Learn about basic technical analysis (ema, ichimoku, rsi…) and what market cycles are.

This will definitely help you in the next bull run to understand how you can invest smartly and not buy into every project that is hyped and overbought.

 

Another example with Ethereum:

When a coin is being hyped through the media, then all the people that wouldn’t normaly be interested in blockchain are jumping onto the wagon.

They just want to get rich. That’s why their are constantly “When moon?” posts on facebook.

 

 

and Litecoin:

How to use Google trends for Investing?

When you want to invest in a new project, think about the reasons why. How did you hear about? Was it some youtuber guru talking about a project, or did you find it through your own research.  Check out the google trends of a coin by searching the project’s name.

Now hopefully you will realise that if a coin is overhyped, people will fomo into is and just buy. Not you! You will be smart and wait for the dip. There is always a dip.

There is another tool for checking social trends and that is solume.io. Very useful, but I still prefer to check the trends manually when investinginto new projects.

http://cryptobulls.info/track-crypto-based-social-media-trends-solume

 

 

3 Responses

  1. Marc Weber says:

    Danke für das coole Gespräch im Zug.

    Euch alles gute beim Lauf.

    Folgendes Brainstorming über Social Indikatoren hatte Ich mal erstellt, aber kein Geld gehabt um es zu testen, ob es sinnvollere Vorhersagen machen kann mit Machine Learning:
    http://mawercer.de/tmp/crypto-machine-learning-btc-coins

    Erfolge von Maschine-Learning:
    CASE 1 AlphaGo

    KeJe:
    – He became a professional go player in 2008 when he was 10 years old
    -> world best go player

    DeepMind company founded in 2010
    -> defeated in 2017 April by Alpha Go, defeated all Go players to my
    knowledge

    Case 2: image recognition
    AI builds neural network improving 1% and improving efficiency by 4%
    https://research.googleblog.com/2017/05/using-machine-learning-to-explore.html
    https://futurism.com/google-artificial-intelligence-built-ai/

    => those image recognition contents have been running for 5 to 10 year

    Case 3: Poker
    poker is about remembering which cards has been played,
    judging probalities ..

    http://www.sciencemag.org/news/2017/03/artificial-intelligence-goes-deep-beat-humans-poker

    quote: A milli- big-blind is one-thousandth of the bet required to win a game. That’s nearly 10 times that of what professional poker players consider a sizable margin, the team reports this week in Science.

    Mir ist nur eines klar, dass es Kräfte gibt, die Ich nicht kontrollieren kann.

    Falls du Lust hast in die Richtung weiterzuarbeiten .. können wir uns gerne unterhalten.

    Werde mehr Zeit brauchen bei dir alles durchzulesen.

    Hatte Scraping Scripte aller ICO Seiten. Ergebnis: Die besten Seiten hatten nur 56% aller ICOs.

    Marc Weber

  1. April 18, 2018

    […] Not enough new buyers and the hype died off. Look at the correlation between bitcoin price and “buy bitcoin” google trends […]

  2. May 22, 2018

    […] Not enough new buyers and the hype died off. Look at the correlation between bitcoin price and “buy bitcoin” google trends […]

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