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: 87
|Neutral to Positive- Sharp decline in positives|
|#BTC- Social Media Mentions||Social Mention||Sentiment 1:1 in favor of positives
With 33 scores towards neutral
|Fear to Greed Index||Alternative.me||Score 26–Fear||Negative to Neutral|
|Fear to Greed Index||CNN Money||Score 10 -Extreme Fear||Negative|
Both Fear and Greed Index are looping towards extreme fear and Fear side indicating that the general sentiment would be to sell. But with a meltdown already behind us, Bitcoin is available at some attractive valuations. On the other side,things are still unclear with respect to hash wars and hence the sentiment is pretty neutral on the other indicators
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 – 87
|11:1 towards Positives
|Neutral to Positive- Dipping Positives|
|XRP- Ripple||Score 87
|13:1 towards Positives
|Neutral to Positive, Positive Rising|
|11:1 towards positives
|Neutral to Positive-
Neutrals moving to positives
|9:1 towards positives
|Neutral to Positive, Positive rises sharply|
*BCH forked – No enough data for the two available forks
Bitcoin Cash underwent a fork this week the meltdown before that has bought most coins to attractive levels. This has led to the sentiment of altcoins turning positive. Apart from Ethereum which has recently moved to third place still has some negative sentimental pressures, the rest of the coins have a sentimental positive.
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.