Summary:

  • Bitcoin (BITCOIN on xStation5) could be no longer used in payments which may lead to a harsh end of the cryptocurrency
  • Triangle pattern seen in Bitcoin, a possible breakout might commence a larger move
  • Google Trends app seems to be a perfect tool to forecast where the Bitcoin price could head going forward

Over the course of the past days the Bitcoin price was outstandingly muted despite reports, rumours which tended to shake the price earlier. A possible reason why the digital currency has become less volatile recently might be fading interest which has slumped since a peak made at the end of the last year according to Google Trends (we’re going to write more about that tool later in this article).

Key obstacles being a problem for the Bitcoin price to continue rising

There is no doubt that the major aim for Bitcoin was to become a legal tender all around the world. While the price was moving quite calmly that idea seemed to be reasonable some companies began calling it into question when the price became remarkably volatile. What’s more, Bitcoin is not a perfect virtual currency as it has plenty of issues which still have yet to be addressed. For example, firms like Stripe, Steam or Microsoft announced their abandonment of Bitcoin’s usage owing to problems related to network congestion, higher transaction fees and obviously price volatility. While Microsoft brought back Bitcoin payments after setting details with BitPay Stripe’s Tom Karlo underlined that transaction confirmation times rose substantially which at the same time led to an increase in the failure rate of transactions denominated in fiat currencies. In a nutshell, one may draw conclusions that until the above-mentioned issues are solved once and for all, Bitcoin could lack fresh, more significant companies adopting it as a form of payment.

link do file download linkBitcoin has been moving within a triangle formation for some time. A possible breakout could give a rise to an extended move. Still, sellers seem to keep control at least when a resistance at $12,550 is finally broken. Source: xStation5

Google Trends app is a good predictor where Bitcoin could move going forward

According to Nick Colas from Datatrek Research the key to unlocking a Bitcoin’s next rally is to observe Google search and the ensuing digital wallet creation as both successfully predicted future moves in the Bitcoin price.

link do file download linkGoogle Trends app shows falling interest of Bitcoin. Source: Google, Bloomberg, XTB Research

As you can see at the chart above the Bitcoin price tended to coincide with a rise in a count of searches in Google. What’s more, the latest decline suggests that the ongoing lacklustre trend could prevail for the time being.