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: 82
|Neutral to Positive- Neutrals rising|
|#BTC- Social Media Mentions||Social Mention||Sentiment 14:0 in favor of positives
With 75 scores towards neutral and 23 in favor of Positives
|Neutral to Positive|
|Fear to Greed Index||Alternative.me||Score 14–Extreme Fear||Negative|
|Fear to Greed Index||CNN Money||Score 11 -Extreme Fear||Negative|
Although BTC is seeing some pressure on the downside, there is still some positive sentiment building up due as Bitcoin is now available at lucrative valuation. Both greed and fear index bend towards extreme fear territory, it’s still difficult to gauge where the floor price is. Also, there is some news building up of institutions entering the crypto space which is also keeping up the sentiment slightly neutral to positive.
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 – 81
|24:0 towards Positives
|Neutral to Positive- Neutrality rising|
|XRP- Ripple||Score 79
|2:0 towards Positives
|Neutral to Positive, Neutrality rising|
|BCH- Bitcoin Cash||Score 65
18.8 % Positive
|6:0 towards positives
|Neutral to Positive- Positives rising|
|3:1 towards positives
|Neutral to Positive-
|4:0 towards positives
|Neutral to Positive, Positive rises but Neutrality dips|
Most of the altcoins are still in the neutral territory as they seem to be following the BTC sentiment. With prices still dipping for altcoins, they too seem to be nearing the support zones where valuation looks attractive. Apart from Ethereum, none of the altcoins mentioned have any major negativity against them and a slight positive news could cheer the sentiment for these coins.
Will this sentiment actually pull back the prices? Do let us know your views on the same
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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.