Number of search queries drops sharply

[Ben Graham]

Bitcoin is facing difficulties in rising above $106,000. This is clearly reflected in the active selling that occurs immediately after each attempt to stabilize above the $106,500 range. Ethereum is also seeing low demand, trading around $3,500.

Currently, there are no significant catalysts for growth—other than the potential end of the government shutdown in the US—so attention must shift to various mixed indicators. For instance, one such indicator is the news that Google searches related to cryptocurrency have fallen to a multi-year low. Historically, this has been a "bullish" sign. Such low levels of search activity have typically been observed before new rallies, which introduces a certain level of optimism.

However, one should not rely solely on this indicator. The decline in search queries may reflect a reduced interest from the general public in cryptocurrencies, filtering out casual participants and leaving more serious investors interested in the long term. This, in turn, lowers market volatility and makes it more resilient to sudden fluctuations.

On the other hand, the lack of new users attracted by hype may slow the overall market growth. A genuine rally requires an influx of new capital, and this is difficult to achieve without the enthusiasm of newcomers. Therefore, it is important to monitor other metrics.

In the current situation, where the macroeconomic landscape remains uncertain and regulatory support is not fully established, caution is key. It is essential not to succumb to FOMO and rush into investments based on a single Google signal. It is better to wait for clearer confirmations of a return to the upward trend and to build a well-considered investment strategy.

In any case, the decline in Google search activity is an interesting signal that should be considered along with other factors.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently targeting a recovery to the $105,300 level, which opens a direct path to $107,900, and from there, it is only a small step to $111,300. The furthest target is around $113,500; surpassing this level would indicate attempts to return to a bull market. If Bitcoin declines, buyers are expected at the $102,400 level. A drop below this area could quickly push BTC down to around $99,400, with the most distant target at $95,900.

For Ethereum, clear consolidation above the $3,664 level opens the way to $3,818. The furthest objective is around $3,949; breaking above this level would strengthen the bull market and increase buyer interest. If Ethereum declines, buyers are expected at the $3,529 level. A return below this area could swiftly bring ETH down to around $3,377, with the most distant support at $3,181.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.

The material has been provided by InstaForex Company - www.instaforex.com