The price of Bitcoin remains stable above $16,000 after a steady increase since November 10th. Each dip was aggressively bought up, allowing BTC to maintain a strong momentum.
Nevertheless, there is little mainstream hype behind the rally. According to Google Trends, there is much less mainstream interest compared to the 2017 rally, when Bitcoin reached $20,000.
The popularity of the keyword „Bitcoin“ in Google’s search engine is 10 out of 100 possible points. In contrast, the popularity of the same keyword reached 100 out of 100 points in 2017.
Why Bitcoin’s price increase is optimistic without mainstream hype
In the last two months the price of BTC has increased by about 65%. The whole rally was without much interest from the mainstream, at least in Google Trends.
This continuing trend points to three things that indicate that a broader Bitcoin rally is likely to emerge in the medium term.
Firstly, it shows that the capital tied up in the crypto-currency market has flowed back into Bitcoin. It shows the growing confidence of investors who have probably hedged their BTC holdings with Stablecoins such as Tether.
Second, it suggests that BTC still has ample room for a major rally, as mainstream investors were absent during the recent uptrend. In 2017, when mainstream investors entered the crypto-currency market, there was an explosive market-wide rally.
Third, it represents the trend highlighted by many on-chain analysts – including Woobull.com founder Willy Woo. The ongoing rally is organic, as there is no mainstream demand yet and it was led by the spot market.
So, if mainstream demand for Bitcoin picks up again, a larger and sustained upward trend could emerge.
Bitcoin’s daily chart. Source: BTCUSD on TradingView.com
Analysts give positive assessment of year-end results
Crypto-currency investor Nunya Bizniz points out the lack of interest of Google Trends when BTC was $14,000.
Since then, BTC has grown by about 15%, but mainstream interest has stagnated since then. Earlier, Bizniz said
„Google Trends: ‚Buy Bitcoin‘ interest in buying at $14,000 last time compared to today. The sheep are still asleep!“
A pseudonymous Bitcoin investor known as „Mr. HODL“ writes of a similar feeling:
„We’re at $16,000 with zero hype. This is gonna be stupid.“
Besides the low mainstream demand for Bitcoin, the on-chain metrics favour a BTC uptrend in the near future.
According to Glassnode, the number of Bitcoin addresses of senders has reached an all-time high. This indicates a high level of user activity on the block chain, which generally indicates strong fundamentals for the dominant crypto currency.
Number of Bitcoin addresses of senders. Source: Glassnode
The combination of positive fundamental, technical and macro-economic factors has catalysed an upward trend for Bitcoin. If the momentum meets with real mainstream interest, there is a chance that it will rally again like 2017.