The crypto market succumbed to a substantial amount of bear pressure that began on Thursday, August 28th, with most of the big assets falling to a new low on Friday, August 29th.
Naturally, the latest data suggests that this latest price drop, seen across the digital asset market, may have been predicted. This conclusion is based on recent cryptographic activity at Google, the world’s largest search engine.
Is Crypto Bull Cycle over?
In a post on August 29th on social media platform X, Alphractal founder and CEO Joao Wedson revealed that crypto-related searches on Google have been surged to new highs recently. This recent surge in Google searches suggests that Bitcoin and the broader crypto market may have reached a new local top, according to on-chain data experts.
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This revelation is based on the Google Trends chart. This allows investors to assess the social engagement of a variety of crypto-related topics on search engines. As shown in the chart below, metrics compare a variety of subjects, including cryptocurrencies, Bitcoin, altcoin, centralized exchange, and data aggregation platforms.
As observed in the highlighted chart, Google Trends metrics have recently witnessed a significant surge, suggesting an increase in public attention across multiple crypto topics. According to Wedson, this type of spike has historically coincided with whales entering the market to sell while “everyone is obsessed.”
Furthermore, cryptocurrency markets have often shown a trend in the past to move in the opposite direction of crowds. These trends explain the price drops seen by most digital assets in the past few days as the market appears to have reached the new local top.
However, Wedson pointed out that other on-chain signals say the market slump, led by the latest well-being, does not necessarily spell the end of the current bull cycle. “Look back to BTC hitting $124K. Euphoria peaked online, whales actively sold, and we’ve been shortened,” the founder of Alfractal added.
Wedson then advised investors to take caution when Euphoria hits the crypto market, as it could suggest that Euphoria is imminent from the local top. Analysts at Crypto said a better strategy is to exit the market wisely at a higher price and then re-enter at a cheaper rate.
The total crypto market capitalization is $3.7 trillion
At the time of writing, Crypto’s total market capitalization was just above $3.7 trillion, reflecting a nearly 4% decline over the past day. Over $142 billion has been released from the crypto market in the last 24 hours, according to TradingView data.
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ShutterStock featured images, TradingView charts
