This strange set of data shows that Bitcoin is about to enter its phase of mass hysteria

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This strange set of data shows that Bitcoin is about to enter its mass hysteria phase
Due to the size of the Bitcoin market, its movements are largely driven by retail investors, with investor sentiment regarding the market playing a major role in its long term trends.Investor sentiment is, however, quite difficult to quantify, with some analysts attempting to use key phrase search scripts to identify the type of terminology that investors use with respect to Bitcoin and crypto, subsequently attempting to quantify a emotional feeling from this data.

Now, a research group has identified a bizarre indicator of investor sentiment that seems to predict Bitcoin's price action, and it shows that the BTC may soon enter its "mass hysteria" phase.

Use of the term "Lambo"Shows Bitcoin May Soon Enter Investor Hysteria

Bitcoin has been caught in a strong uptrend for the past six weeks, which has rekindled investor sentiment and rekindled hopes that the markets may soon see new momentum.

This growing hope can quickly become a hysteria, which is elucidated by looking at the data relating to the use of the term "Lambo"On Reddit.

ChartStar, a data-driven trading site, spoke of the close correlation between investor use of the term "Lambo"And" Lamborghini "and Bitcoin price action, providing a graph showing the striking correlation observed throughout 2017 and 2018.

Bitcoin BTC
Image courtesy of Chart Star

Looking at the graph below, it now appears that the use of these terms is becoming parabolic, which could signal that investors are about to enter the "mass hysteria" phase which has led Bitcoin to a trend. massive bullish.

Bitcoin BTC
Image courtesy of Chart Star

Google Trends data further confirms this notion

As recently reported by CryptoSlate, Google Trend data also seems to suggest that a flood of retail investors may be about to spill over into the markets.

While examining the search volume on Google linked to a few important key phrases, it becomes clear that the 2020 cryptocurrency rally has generated interest in the markets, with searches for phrases like "buy Bitcoin" and "Bitcoin Reduce by halfThe two have exploded in recent weeks.

Since retail investors are an integral part of Bitcoin and the crypto markets, it is imperative that their current interest in the markets becomes more of a frenzy than just a tempered interest so that BTC can see its next parabolic move.

Bitcoin, currently ranked # 1 in market capitalization, is up 1.24% in the past 24 hours. BTC has a market capitalization of $ 188.23 billion with a 24-hour volume of $ 42.32 billion.

Graphics by CryptoCompare

Bitcoin is up 1.24% in the past 24 hours.

Posted in: Bitcoin, Analysis, Price monitoring

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