Data from Google Trends show that searches for the word „Bitcoin“ increased to an annual high when the price of BTC rose to USD 19,400.
Today, the Bitcoin price (BTC) extended its rally to a new all-time high when the price rose to USD 19,412 in the morning trading session.
Daily performance of the cryptcoin market.
Determining the true historical maximum of BTC is debatable, as several exchanges show different figures. For example, Coinbase shows the level of USD 19,892 as the historical maximum of Bitcoin, while BitMEX and Binance show USD 19,891 and USD 19,799 respectively. Therefore, for most traders, the USD 20,000 is likely to be the point of interest that will solidify BTC to a new all-time high.
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The breakout of the $19,000 level happened faster than many expected, especially after Bitcoin’s price plummeted to $18,000 in the afternoon of November 23rd. This drop occurred about the same time as the 30% drop in XRP on Coinbase after the altcoin reached the USD 0.92 level.
Bitcoin price and sentiment chart (per hour).
Data from TheTie, a social analysis data platform, shows that while the price of Bitcoin lost its momentum on November 22 and 23, sentiment took a major hit when traders anticipated a possible retest of the lower supports in the area below USD 18,000.
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Bitcoin price compared to daily sentiment score.
According to Joshua Frank, founder of TheTIE:
„The daily sentiment score analyzes how positive or negative investors have been in the last 24 hours over a 20-day period. This metric (daily sentiment) has been positive (above 50) since November 16 when Bitcoin was close to USD 16,000. For the daily sentiment score to remain positive, it means that conversations must become increasingly positive. So if investors have been positive in the last 20 days, they must be even more positive in the last 24 hours for the score to remain above 50.
This suggests that despite the sharp declines, say to $18,000 or less, most people who invest or are watching the price of Bitcoin still feel overwhelmingly optimistic about the prospects for the digital asset when compared to historical price and sentiment data.
The price of Bitcoin was only higher once in its history
Bitcoin searches on Google reached an annual high.
Google Trends data also shows that searches for the term ‚Bitcoin‘ also reached an annual high today, when the price rose above USD 19,000, but the figure is nowhere near the peak reached in December 2017.
What’s next for the Bitcoin price?
As we can see on the 4-hour chart, Bitcoin’s drop to USD 18,000 created a double bottom right at the key support, and the bullish side intervened to buy the drop with 3 consecutive high volume peaks.
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At the time of writing, the price has fallen to the lower support of USD 18,900 and if this level is not maintained, then the next support is at USD 18,650, which is slightly above the 20-day moving average and a high volume node in the volume profile (VPVR).
Similar to the move to the $18,000, a period of consolidation and support building is normal and healthy to maintain momentum in an uptrend.