– Caution sighted as sentiment turns neutral with negativity rising
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: 95
Positives: 45.9 % Negative: 2.4% Neutral- 51.8% |
Neutral to Positive |
| #BTC- Social Media Mentions | Social Mention | Sentiment 3:1 in favour of positives
With 167 score towards neutral and 13 in favour of Positives and 4 for negatives |
Neutral to Positive |
| Fear to Greed Index | Alternative.me | Score 18 -Extreme Fear | Negative- rise in negativity |
| CNN Money Greed Fear Index | CNN Money | Score- 70 Greed | Positive- but dipping |
While the two analysis shows a neutral to the positive indication, the fear to Greed Index loops towards the fear side signifying investors are too worried, which will take the price down, which in a way is a sign that buying opportunities may soon be arriving.
Also, read: Bitcoin [BTC], Ethereum [ETH], Ripple [XRP] Price Analysis for the week August 6-12
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 91-
49.5%- Positive 4.4%- Negative 46.2%- Neutral |
5:1 towards Positives
Neutral 111 |
Neutral to positives- rising negatives |
| XRP- Ripple | Score 80
31.1 % Positive 7.8% Negative 66.1% neutral |
6:1 towards Positives
Neutral 173 |
Neutral to Positive- rising negatives |
| BCH- Bitcoin Cash | Score 80
38.3% Positive 9.6% Negative 52.1% Neutral |
1:1 balanced between positives and negative
Neutral 123 |
Balanced with negative pumping up |
| EOS | Score 80-
24.1% Positive 6.0%- Negative 69.9%- Neutral |
4:1 towards positives
Neutral 149 |
Neutral to Positive- negative pumping up |
| XLM-Stellar | Score 92
41.8 % Positive 3.3% Negative 54.9% Neutral |
1:1 balanced between positives and negative
Neutral 28 |
Neutral to Positive with negative pumping up |
Even with falling prices, the social media sentiment with most altcoins just like the Bitcoin is neutral to positive signifying there could be a pullback in prices after this sentimental correction.
Will this sentiment actually pull back the prices? Do let us know your views on the same.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.
