Peak Bitcoin Interest – December 2013
Remember back in December when it looked like bitcoin was at 1100 and it looked like the sky was the limit? Do a search on “bitcoin” here on PP and the amount of breathlessness was simply amazing. You were doomed to miss out if you didn’t buy now-now-now.
That was “so four months ago.” Here’s the latest price chart, superimposed on top of the “google trends” search for the word “bitcoin.” It appears that bitcoin prices seemed to peak right along with bitcoin interest. Now it appears to have broken chart support at (about) 500 after an evil-looking descending triangle, and is heading to test the breakout at 200.
My guess – unless “something” piques the interest of the thundering herd, bitcoin will retrace down to test 200. Might be a buying opportunity there, depending on how it behaves.
Lesson: buying anything at the point of “peak herd interest” is generally not a way to make money. Of course we here all knew that, right? The trick, of course, is spotting exactly where the point of peak hype actually is.
I think bitcoin will still go down. There are many people that are doubtful about this virtual currency.