Cryptocurrencies are in a very difficult territory where no fundamental or technical indicators are actually affecting the prices but the sentiments of the community. Every news article or a social mention is driving the trend and direction of where the prices are heading to. Majority of this drive is from the sentiments of Bitcoin- the largest cryptocurrency, still, some altcoins have their specific pros and cons that changed 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, Bitcoin is the largest coin that decides most of the trend for the crypto markets and it is necessary to understand what 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 that make Bitcoin an interesting study. An analysis of its social mention and, greed & fear index would give us a clear idea of what is happening.

So Bitcoin, in the New Year, is pretty much range bound and is stabilizing in the range of USD 3800 to USD 4200. The greed and fear index has also moved from the ‘extreme fear category’ to ‘fear category’ as the risk of volatility is reducing. There are chances that the neutral sentiment may take the markets back to USD 4200 before it starts the upward rally.

Altcoin Sentimental Analysis

Fear and Greed index is only available for BTC as not may altcoins have all components required to calculate it.

After the positive year-end, most altcoins are in the neutral zone. Like Bitcoin, they are all pretty range bound. Ethereum still leads the pack as it moves back to the second place replacing XRP. XRP remained neutral last week. There isn’t much movement in rest of altcoins but most of them still outperform the stable bitcoin.

Will this sentiment actually pull back the prices? Do let us know your views on the same.