Cryptocurrencies are in a very difficult territory where no fundamental or technical indicators is actually affecting the price than the sentiment of the community. Every news article or a social mention is actually driving the trend and direction of where the prices are heading to. Although most of the sentiment is derived from the sentiment of the Bitcoin- the largest cryptocurrency, still some altcoins have their specific pros and cons that change their variance from that of Bitcoin. Let’s look at the few indicators that are used widely across to determine the sentiment.
Bitcoin Sentimental Analysis
As mentioned it’s the largest coin in the market that decides most of the trend for the crypto markets is necessary to understand that sentiment it garners among the community. A lot of news flow and sell off has dampened the short term sentiment but yes there are some long-term positives which make Bitcoin an interesting study. An analysis of its social mention and greed and fear index would give us a clear idea of what is happening
|Analysis Type||Tool||Analysis- Score||Sentiment|
|#BTC – Hashtag Analysis||Keyhole||Score: 78
|Neutral moving to Neutrals rise|
|#BTC- Social Media Mentions||Social Mention||Sentiment 2:1 in favor of positives
With 152 scores towards neutral and 9 in favor of Positives
|Fear to Greed Index||Alternative.me||Score 44–Fear||Negative|
|Fear to Greed Index||CNN Money||Score 61 -Greed||Positive|
Bitcoin had a bit of a dip this week, with price inching below USD 3900. The greed and fear index has moved a towards the greed side, showing that investors are still buying despite a bit of sluggishness. The other two indicators show a bit of neutrality signifying still a confused view on the sentiment of Bitcoin.
Altcoin Sentimental Analysis
Fear and Greed index is only available for BTC as not may altcoins have all components required to calculate it
|Altcoin||Keyhole # analysis||Social Mention||Sentiment|
|ETH- Ethereum||Score – 82
|81 towards Positives
|Neutral moving towards positive|
|XRP- Ripple||Score 84
|3:1 towards Positives
|Neutral to Positive, Positive rising|
|BCH- Bitcoin Cash||Score 72
30.3 % Positive
|10:1 towards positives
|Neutral to Positive- Positives sneaking up|
|8:1 towards positives
|Neutral to Positive-
|7:1 towards positives
|Neutral to Positive, Positives rising|
All altcoins seem to be moving on the positive side on the sentiment which indicates that we could see some price rise. Unless some major setback is seen in any of the coins, the sluggishness in the altcoins could subside in coming days
Will this sentiment actually pull back the prices? Do let us know your views on the same.
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A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com