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: 84
|Neutral to Positive- More negative coming|
|#BTC- Social Media Mentions||Social Mention||Sentiment 10:1 in favor of positives
With 165 scores towards neutral and 19 in favor of Positives
|Neutral to Positive|
|Fear to Greed Index||Alternative.me||Score 21– Extreme Fear||Negative|
|Fear to Greed Index||CNN Money||Score 14 -Extreme Fear||Negative|
Both Fear and Greed Index are looping towards extreme fear side indicating that the general sentiment would be to sell. But the Keyhole andSocial mention analysis still has some positives backing them. Looks like the stability of Bitcoin is still going to continue and we may see buy on dips if BTC hovers near USD 6200-USD 6300.
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 – 90
|20:0 towards Positives
|Neutral to Positive- looping to positives|
|XRP- Ripple||Score 96
35.6 % Positive
|4:1 towards Positives
|Neutral to Positive, Neutrality rising|
|BCH- Bitcoin Cash||Score 83
37.8 % Positive
|Neutral to Positive- Neutrality rising|
|6:1 towards positives
|Neutral to Positive-
28.4 % Positive
|7:0 towards positives
|Neutral to Positive, Positive and Neutrality both rise|
Just like bitcoin, all other altcoins are is giving a sign of stability and are looking to remain range bound. Eventhough the negatives are decreasing, one would need some strong positives for these coins to break the resistance level. Looks like we are heading into a very stable week and the street would need some solid news for the prices to move on either sides.
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.