2020-11-14 17:06 |
The price of Bitcoin is showing stability above $16,000 after a continuous rally since November 10. Every major dip was aggressively bought up, allowing BTC to sustain strong momentum. Yet, there is little mainstream hype behind the rally.
According to Google Trends, compared to the 2017 rally when Bitcoin hit $20,000, there is noticeably lower mainstream interest.
The popularity of the keyword “Bitcoin” on Google’s search engine is at 10 points out of a possible 100. In contrast, in 2017, the popularity of the same keyword hit achieved 100 points out of 100.
Bitcoin search engine popularity. Source: Google Trends Why Bitcoin increasing in price without mainstream hype is optimisticThroughout the past two months, the price of BTC has increased by around 65%. The entire rally occurred without much interest from the mainstream, at least on Google Trends.
This ongoing trend indicates three things that suggest that a broader Bitcoin rally would likely emerge in the medium term.
First, it shows that sidelined capital within the cryptocurrency market has flown back into Bitcoin. It demonstrates growing confidence from investors who likely hedged their BTC holdings with stablecoins like Tether.
Second, it signifies that BTC still has a large room for a larger rally because mainstream investors have been absent throughout the recent uptrend. In 2017, as soon as mainstream investors entered the cryptocurrency market, an explosive marketwide rally materialized.
Third, it depicts the trend which many on-chain analysts, including Woobull.com founder Willy Woo, have been emphasizing. The ongoing rally is organic because it is yet to see mainstream demand and it has been led by the spot market.
As such, when the mainstream demand for Bitcoin begins to pick up, a larger and a prolonged uptrend could emerge.
The daily chart of Bitcoin. Source: BTCUSD on TradingView.com Analysts are positive about the year-end performanceNunya Bizniz, a cryptocurrency investor, pinpointed the lackluster Google Trends interest when BTC was at $14,000.
Since then, BTC has increased by around 15% but the mainstream interest has stagnated since. Bizniz previously said:
“Google Trends: ‘Buy Bitcoin’ Interest in buying at $14K last time compared to today. The sheep are still asleep!”
A pseudonymous Bitcoin investor known as “Mr. HODL” echoed a similar sentiment. He wrote:
“We’re at $16k with zero hype. This is going to get stupid.”
On top of the low mainstream demand for Bitcoin, on-chain metrics are favoring a BTC uptrend in the near term.
According to Glassnode, the number of Bitcoin addresses from senders reached an all-time high. This shows a high level of user activity on the blockchain, which generally indicates strong fundamentals for the dominant cryptocurrency.
Number of Bitcoin addresses from senders. Source: GlassnodeThe confluence of positive fundamental, technical, and macro factors are catalyzing a Bitcoin uptrend. When the momentum is met with real mainstream interest, there is a possibility that a 2017-esqe rally could occur once again.
The post Bitcoin is stable above $16k with little mainstream hype, and it’s very bullish appeared first on CryptoSlate.
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