The post Analyst Calls for Caution Amid Surging Retail Interest In Bitcoin; Here’s Why appeared on BitcoinEthereumNews.com.

Ali Martinez, a technical and on-chain crypto analyst, advises investors to be cautious following a surging retail interest in Bitcoin (BTC). The analyst issued the notice today in a tweet, emphasizing that his warning is not bearish but a word of caution due to the rising interest in Bitcoin among retail investors.  Bitcoin Underperforms During Rising Searches for BTC  Martinez pointed out that even though growing retail interest in Bitcoin usually signals more capital inflow into the market, increased search for the premier asset historically aligns with price corrections. This suggests that the price of Bitcoin usually falls whenever its search activity increases.  Providing more context, Martinez called attention to Bitcoin corrections in 2021, which coincided with spikes in search activity for the premier asset. According to the accompanying chart, Bitcoin registered a 30.47% correction on January 9, 2021, when Google searches for the top asset surged above 80.  The following month, on February 21, the premier asset’s price also plunged 26.28%, coinciding with surging search activity above 75. Furthermore, Bitcoin saw a correction of 27.57% on April 14, 2021, when its global search neared a score of 70.  Lastly, the world’s largest cryptocurrency by market cap witnessed another hefty correction of 50.85% between May and June 2021, coinciding with a Google search volume of 100.  Notably, the chart showed that Bitcoin’s current search volume was hovering around 75, suggesting that BTC could witness another correction if the historical trend repeats itself.  Recent Search Activity and Bitcoin Price Reaction  According to data from Google Trends, the global search for Bitcoin stands at 52 at press time. The score peaked at 100 yesterday at 21:36 (UTC) and subsequently retraced to 72 an hour later. It has now declined to 52 in the hours leading up to press time.  Meanwhile, Bitcoin, which…

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Filed under: News - @ November 12, 2024 7:22 pm