Summary:
- Bitcoin tends to soar over the weekends
- Bitcoin price seems to be correlated with the number of tweets and Google searches
- Are the "whales" coming back to the market?
Rally on the Bitcoin market continues. When Europe was focused on the European Parliament election, Bitcoin broke above another key level at $8200. This is another sign that cryptocurrencies tend to attract interest at times of market uncertainty.
Let's look at price action during May weekends. Weekends are marked by yellow boxes.
Bitcoin is in prime time at weekends. Source: xStation5
At the first weekend of May price bounced off the recently broken upper limit of the bullish channel which served as the key support level. At the second weekend, Bitcoin maintained the bullish momentum with some solid gains. The third weekend also turned out to be groundbreaking for Bitcoin - the price broke out of triangle formation and hit new 2019 highs. One may conclude that Bitcoin tends to experience major moves over the weekends. The question remains whether this tendency will prevail in the future. From a technical standpoint, Bitcoin trades near the key $8200, which is additionally strengthened by 10-day moving average. Bulls could use this place to deliver another push higher.
Twitter chirps, Bitcoin rises
Investors who look for an additional tool to predict future price movements of Bitcoin may find new report from the Southern Methodist University interesting. The report shows that Bitcoin price iss highly correlated with Google searches for keyword Bitcoin.
Bitcoin price moves seem to be correlated with Google Trends. Source: Southern Methodist University
Analysis of social media, especially Twitter, also seems to confirm the existence of correlation.
The volume of tweets over the last 3 years is in line with the price. Source: Southern Methodist University
The hypothesis was to examine if the volume of Google searches and the number of tweets and their sentiment can affect prices. In the course of study, it was uncovered that the number of tweets and Google searches changes before prices do. The lack of sentiment being the leading factor was theorized due to the amount of “noise” there is on Twitter's conversations. It is interesting to note that sentiment was positive even when cryptocurrencies were declining.
Are big investors re-entering the market?
According to Whale Alert in the past 24 hours, three huge cryptocurrencies transfers were tracked: 200 000 000 Ripples (from Ripple wallet to Ripple exchange), 77 410 Bitcoins (from Binance to unknown cryptocurrency wallet) and 68 570 Bitcoins (from Binance to unknown cryptocurrency wallet). Over the last month, several alike transactions were recognized what may hint that institutional investors see cryptocurrencies as more attractive market now.
77410 Bitcoins were transferred from Binance exchange to unknown cryptocurrency wallet. Source: whale.alert.io
