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 attempted to break above a record high of $90,000 earlier today, has plunged to the $85,000 mark. Bitcoin is currently trading at $85,560, down 4.88% from its all-time high of $89,956.
Binance Founder Warns Upcoming Volatility
Besides Martinez, many crypto stakeholders have warned investors to exercise caution amid spikes in Bitcoin’s price.
Last week, Binance co-founder Changpeng Zhao (CZ) warned that Bitcoin could experience significant volatility following its surge to an all-time high.
He forecasted that the premier asset would register significant dips and highs in the coming days and encouraged investors to brace themselves for imminent volatility.
“Control your greed. Don’t put all your eggs in one basket. Ape slowly,” he advised.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
