The firstly analyst to follow bitcoin sees a very accessible way to track its next big strike.
DataTrek Research’s co-Founder, Nick Colas, said recently that the key is looking into Google search and billfold growth.
“By looking at the number of people who search for the word ‘bitcoin’ on Google, which has harshly a 60 percent market share of search globally, we get a pretty gear sense of where the interest is,” he told CNBC’s “Trading Nation” this week.
“The evidence does show exactly the same price trends that we saw for the history 90 days,” he added.
And, just like the latest search shifts, the cryptocurrency’s price has been deep in the doldrums. It’s been trading in the $10,000 to $12,000 categorize, off sharply from its record price near $20,000 it hit in December.
“Bitcoin searches procure really trailed off. So, the interest levels definitely show you where bitcoin has these big breakouts and then pullbacks,” revealed Colas.
He points to more evidence to support his theory to the bitcoin explode between last Thanksgiving and December 17 — when search above saw a significant pick-up as bitcoin prices surged to a record at $19,843.
“Search fads skyrocketed after Thanksgiving here in the U.S. in November of last year — various than doubling in the course of just a couple of weeks,” added Colas. “That incremental search for the position ‘bitcoin’ actually led to an incremental number of wallets being formed, a method by which woman hold bitcoin.”
But days later, bitcoin prices crashed, and so did searches for it.
Ignoring bitcoin’s troubles, Colas, who owns a quarter of a bitcoin, doesn’t regard as it needs a life raft. He points out that it’s still trading higher than sooner than Thanksgiving, and the technology makes a lot of sense long-term.
“From this stage on, we just have to look for the beginnings of good news that when one pleases re-accelerate wallet growth to make the thing go higher,” Colas verbalized.