Topic: GOOGLE TRENDS: TRADING BITCOIN CAN NEVER BE THIS SIMPLE! (Read 170 times)
This is the first time I know Google Trends can help Trader analyze the chart. Great!
Google Trends is a great tool
Practise in the trading is much more important than trends, especially if you like to predict crypto market. There can be a lot of mistakes in the trading, therefore practise with small amounts is so important, before you can start to trade with larger investments.
this theory has been mentioned here before too. and it is an interesting one but to be honest this is the least reliable thing you can find because there is no direct logical relationship between how much people search about bitcoin and its price rise. they may search a lot but price still goes down!
I think that Google search trends are just following the BTC price movement.When a price bubble starts,many people just start searching in Google to find out why the bitcoin price is going up so fast.We can`t preict the future price movement using Google Trends.I wonder can you apply this strategy with every big altcoin,like ethereum,ripple,bitcoin cash and litecoin?
Google Trends is an useful tool in trading that help you analyze current popular trends. Especially when FUD and FOMO are still drive the trend of cryptocurrency market, Google Trends would help you easily keep track of the trend and investor psychology.
For example, if you try to follow BTCUSD on the Google Trends chart (Figure 1), over the course of 12 months, BTCUSD price have the same movements to the searching trend of its term - “BTCUSD” - on Google globally. The diagram below will illustrate how to use Google trend as a tool to predict BTC trend.
https://ibb.co/mNTq6J
In this chart, we will use a small trendline to gauge growth in the global BTCUSD trend. Once the search trend is too high, it means that Bitcoin is being overwhelmed by Fomo. The market then is more like a bubble and it's time to close the buy order or make a short sale.
https://ibb.co/nNMtRJ
Chart 2 (in Figure 2) has another trendline above the red line. At this point, the search trend for Bitcoin will be divided into two: one above the Bubble zone which is the “bubble” time of BTCUSD; and one below the Bubble zone and close to the red line, which is the best time to buy.
In general, Google Trends is an effective tool, but it plays a very small role in the critical analysis of the market. To dive deep into the field, you need a lots more than just the Google Trend, for example, social media, network usage, and transaction tools.
Source: Collected
For example, if you try to follow BTCUSD on the Google Trends chart (Figure 1), over the course of 12 months, BTCUSD price have the same movements to the searching trend of its term - “BTCUSD” - on Google globally. The diagram below will illustrate how to use Google trend as a tool to predict BTC trend.
https://ibb.co/mNTq6J
In this chart, we will use a small trendline to gauge growth in the global BTCUSD trend. Once the search trend is too high, it means that Bitcoin is being overwhelmed by Fomo. The market then is more like a bubble and it's time to close the buy order or make a short sale.
https://ibb.co/nNMtRJ
Chart 2 (in Figure 2) has another trendline above the red line. At this point, the search trend for Bitcoin will be divided into two: one above the Bubble zone which is the “bubble” time of BTCUSD; and one below the Bubble zone and close to the red line, which is the best time to buy.
In general, Google Trends is an effective tool, but it plays a very small role in the critical analysis of the market. To dive deep into the field, you need a lots more than just the Google Trend, for example, social media, network usage, and transaction tools.
Source: Collected
Jump to: