The cryptocurrency markets have experienced a massive sell-off and decline in interest from their all-time highs at the end of 2017 and the beginning of 2018. Due to the substantial decline in prices, many cryptocurrency investors who got in during the boom have lost heart and left the market for good.
However, the entire cryptocurrency industry appears to have a spark of life now that there is speculation that Bitcoin has already bottomed and numerous altcoins have spiked in price. A number of promising altcoins recently broken key resistance points and continue to move upwards.
Some altcoins have experienced powerful rallies, yielding investors as much as 100% price gains in the past few weeks alone. Therefore, there is a growing sentiment among crypto community members that the bottom is in and we have entered “alt season.”
A number of small, medium, and even large-cap altcoin price charts depict a change in market sentiment with bullish runs and coins making higher highs and higher lows. However, is this enough evidence to indicate alt season is upon us?
When investing or trading, it’s best to take multiple indicators into consideration before making a confident trade or investment. Therefore, analyzing market sentiment based on metrics other than price action can be an excellent pairing indicator.
One such metric is to look at the data and charts provided by Google Trends.Image Source: https://trends.google.com/trends/explore?geo=US&q=%2Fg%2F11bxc77l76
As seen in the chart above, there is a clear spike in searches about the altcoin market. In fact, the recent interest in altcoins far exceeds anything we have seen over the past 12 months.
However, it’s important to note that this chart is depicting the overall interest in the topic that is “altcoins” and not specific search results of the word “altcoins.” According to Google, topics are described as collections of related search terms that are aggregated to provide an overall snapshot of what people are searching.
Therefore, not only is Google tracking search results with the word “altcoins,” but it’s also tracking related terms such as “XRP,” “Litecoin,” “Ravencoin,” “Binance Coin,” etc., and compiling them in the data seen in the chart above.
Regardless of how Google Trends aggregates their data, when you zoom out to a longer time period, the Google Trend shows that “altcoin” topic search results are approaching their all-time highs as seen at the end of 2017.Image Source: https://trends.google.com/trends/explore?date=today%205-y&geo=US&q=%2Fg%2F11bxc77l76
It’s clear that the altcoin market sentiment is changing. Not only are certain altcoins experiencing massive price runs, but overall market interest is nearing levels not seen since the end of 2017 during the peak of Bitcoin’s bull run.
However, even with the Google Trend metrics and rising prices of some altcoins, nobody can say for sure if we’ve entered alt season, or whether the bear market is over yet.
After all, the majority of alt coins are still down over 90% from their all-time highs, and we have yet to receive confirmation that we’ve hit another bull run.
Do you think we have entered alt season? Do you think the cryptocurrency bear market is over? Let us know what you think in the comment section below.