Altcoin Roundup: Data shows social metrics surge ahead of DeFi and NFT price rallies
Analyzing Twitter mentions and Google Trends data is another way traders keep an eye on emerging trends in the cryptocurrency ecosystem.
A common saying in the investing world is “The trend is your friend,” a phrase that points to the idea that the majority of the time, sticking with the prevailing market trend will produce positive results.
Some of the common metrics used to identify market trends include: technical analysis, which involves studying price charts to spot opportunities; fundamental analysis, which involves looking at a project’s underlying economic and technological factors; and social media metrics, which help an investor listen to the pulse of what the wider public is focused on.
One of the more popular metrics that crypto traders use to identify emerging patterns is Google Trends, a product that analyzes the popularity of search queries performed via Google’s search engine. Using Google Trends, users can view the data in simple line graphs that also provide a breakdown by geographical region.
The Google Trends chart for “Bitcoin” shows several sharp spikes in searches over the past year, most notably in early January, late February, mid-April and again in mid-May.