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: 64
|Neutral moving to Negative- Negatives double, Positives dip|
|#BTC- Social Media Mentions||Social Mention||Sentiment 3:1 in favor of positives
With 192 scores towards neutral and 3 in favor of Positives
|Neutrality raising , Positives Dipping|
|Fear to Greed Index||Alternative.me||Score 9–Extreme Fear||Negative|
|Fear to Greed Index||CNN Money||Score 9 -Extreme Fear||Negative|
Extreme Fears on both Fear and Green Index cclearly showing that people are exiting the markets. The same is seen on Social Media as people have been negative towards the front liner. The sentiment seems gloomy and it looks like the bottom is still a bit far away for now.
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
|5:1 towards Positives
|Neutral moving to Negative- Sharp falls in Positive|
|XRP- Ripple||Score 84
|4:0 towards Positives
|Neutral to Positive, Neutrality rising|
|BCH- Bitcoin Cash||Score 72
30.3 % Positive
|3:1 towards positives
|Neutral to Positive- Positives sneaking up|
|4:1 towards positives
|Neutral to Positive-
|2:1 towards positives
|Neutral to Positive, Positive rising|
As the BCH hash war ends, positivity seems to be returning back to the coin. The same has been the case with EOS and XLM which has remained silent as the prices have spiraled down. XRP seems to be entering a neutral zone while ETH is clearly losing some positivity as its looms near USD 100 support levels.
Will this sentiment actually pull back the prices? Do let us know your views on the same.
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.