On June 7, Coin Street News (@CoinStreetNews) shared a chart on Twitter that could have serious implications on bitcoin’s price action. The account specializes in technical analysis of cryptocurrencies and other assets. They posted a Google Trends chart and revealed that “there are more people searching ‘bitcoin’ now than during the 2013 bubble.” The tweet also noted that the year-over-year data for the search term “bitcoin” has gone up for the first time in the past year.
Coin Street News noted the significant rise in the search term “bitcoin”:
Followers of Coin Street News did not find the post newsworthy. User Hawthorne (@hawthornebtc) replied, “…we chartin Google trends chart now?” Another follower with the Twitter handle @fathead noted that we’re so far away from the 2017 bubble search results.
What these followers, along with many others, seem to miss is the potential importance of this spike. Based on the Google Trends chart posted by Coin Street News, the search term “bitcoin” not only took out a key resistance but it also retested it as support. More importantly, if you look at the chart closely, you will see that the breach of the resistance triggered the breakout from an Adam and Eve double-bottom pattern.
In technical analysis, the breakout marks the trend reversal for the search term. This suggests that it’s quite possible that from this point forward, there could be an uptrend in the interest of the search term “bitcoin” over time. This is potentially ultra bullish for the price of the cryptocurrency. This bias is supported by a study published in the second half of 2018.