Major collapse of social media sentiment with Bitcoin at 8000 USD

Bitcoin social media sentiment, calculated with machine learning from social media posts has recently collapsed to levels last seen when Bitcoin was around 6000 USD.

See our tweet with charts:

Positive sentiment has exhausted itself and we could see possible corrections on bitcoin and crypto in general.

Social Media Sentiment Signal calling intermediate bottom for Bitcoin at 3700 USD

BittsAnalytics provides its users with real-time social media sentiment, calculated with machine learning from social media texts about individual cryptocurrencies. Social media sentiment has proved as a very valuable signal many times in the past and again in recent downturn, effectively signalling intermediate bottom at 3700 USD.

There were several days of severe negative social media sentiment for Bitcoin during recent correction, as evident from this picture, showing daily social media sentiment for Bitcoin:

Similar picture was seen for social media sentiment on hourly level.

After the first surge on October 22nd the price remained first flat and then fell after retreat in sentiment. Yesterday however came a second even stronger sentiment surge when Bitcoin was at around 3700 USD and this sentiment surged to new intermediate heights. Unlike previous surge, the positive sentiment trend persisted this time and Bitcoin price also followed afterwards.

Social media sentiment was thus again proven very valuable as a market sentiment indicator. It is available as part of our Advanced subscription, more information is available at:

https://www.bittsanalytics.com/subscribe.php

Social Media Sentiment also flashed warnings with Bitcoin at 6500 USD, you can read more in our previous blog:

Warning from our market sentiment indicator was again correct – flashing warnings with Bitcoin at 6500 USD

Warning from our market sentiment indicator was again correct – flashing warnings with Bitcoin at 6500 USD

In the beginning of 2018 we have introduced a market timing indicator based on social media sentiment of cryptocurrencies, where the sentiment is determined with machine learning from texts of social media posts.

For more detail and some of past warnings see e.g. our blog post from March of 2018:

Our warning Sentiment Market Indicator was now correct for the fourth time in a row

The market timing indicator was again correct recently, in flashing warnings before the latest fall in cryptocurrency prices. As you can see in the picture below:

it actually gave two warning signals in a short period of time. In a way the latest warnings were even more worrisome. The market indicator gives a warning when all among the top 10 cryptocurrencies in terms of market cap have a positive daily change in sentiment. In a sense it measures short-term excess optimism. But unlike most of previous cases this time was no major price jump before the warnings. In other words, despite a lot of excess optimism about bitcoin and sector in general (due to positive news on Bakkt and many others), there was almost no price change. If the price does not move on such optimism then it is likely that the upside is limited and downside can be large on potential negative impact news.

This is indeed what happened subsequently after the warning signals, a sharp drop in bitcoin and other crypto prices:

Our market sentiment indicator is part of our subscriptions, learn more about it at:

https://www.bittsanalytics.com/subscribe.php

Alpha Generating Signals from Blockchain Analysis of Bitcoin Cash

Our platform BittsAnalytics has recently introduced another advanced feature for analysis of cryptocurrencies – Blockchain Analytics. For main cryptocurrencies, such as Bitcoin, Bitcoin Cash, Ethereum and main ERC-20 based tokens we are analyzing the changes in holdings of top token holders. Our research has shown that such changes can have a high impact on prices and this led us to include blockchain analysis to the selection of our cutting edge tools for investors in digital assets.

In this blog post we would like to show you an example of impact of changes in top token holdings onĀ  subsequent price developments. As the Bitcoin Cash has dominated the recent news with its hard fork, we decided to focus on this particular cryptocurrency.

Over the summer there were several examples of large reduction among the top 10 non-exchange token holders. Often this means that the holdings are moved to exchanges and will be soon sold, resulting in selling pressure. For example, on 21st June 2018, there was a large reduction in holdings of one of the largest addresses at the time:

In seven days immediately after the aforementioned balance reduction, the Bitcoin Cash price collapsed from 874 USD to 660 USD for a negative return of -25%. In the same period Bitcoin lost less than 2%, leading to +23% of alpha for the trade based on this blockchain analysis.

If you are interested in using blockchain analytics for generating alpha in your digital assets trading please contact us at [email protected]

An example screenshot from the platform showing evolution of top 20 holders for Bitcoin with exchanges separately denoted:

 

Ravencoin up 80% since the initial rally in real-time sentiment

BittsAnalytics platform offers real-time social media analytics for cryptocurrencies – determining number of social media mentions as well as sentiment on an hourly basis. This allows assessing both the current buzz about the cryptocurrency as well as its sentiment (positive or negative). Sentiment is determined by applying machine learning models on texts of social media posts.

In this post we focus on Ravencoin as another case study of application of sentiment analytics for profitable trading. On 17th October it had a big jump in sentiment, see our tweet from that time:

 

Ravencoin proceeded to make a return of over +80% after the sentiment signal. Real-time social media analytics tools are available as part of our advanced subscription, you can find more information at:

https://www.bittsanalytics.com/subscribe.php

For other recent examples of using real-time analytics read our recent blog posts:

Electroneum up 230% since a sentiment signal from real-time social media analytics

Ripple up more than 100% since a spike in social media mentions

Nano up more than 50% since surge in social media mentions on 11th September

 

 

Sentiment again a very useful warning signal for Bitcoin price

In this post we are looking at recent social media sentiment data for Bitcoin. Sentiment is determined with machine learning from analysis of texts in social media posts about Bitcoin.

By analysing first the sentiment on the daily basis we notice that it had a very strong spike a few days ago:

For those who are reading our blog posts over the last year, this usually means a major price decrease in the near future. For previous such examples of Bitcoin falling after reaching high levels of sentiment see e.g. one of our previous blog posts on this topic:

Bitcoin again falls after reaching sentiment high – for the fourth time the warning was correct

We have recently introduced an even more detailed sentiment analytics, on hourly level. If you examine the picture of hourly sentiment:

you will notice that although the prices were relatively high the sentiment was really on the lower part of historical range for the last 10 days. Just before the price fell, it was again near the trough. Especially concerning was also the development days ago when the hourly sentiment reached record levels without any major movement in price itself.

Our sentiment analysis tool was thus again proven extremely valuable for market timing. If you want to know more about it read our other blog posts or subscribe at:

https://www.bittsanalytics.com/subscribe.php

Siacoin rallies after real-time sentiment jump for a return of 20+%

BittsAnalytics platform offers real-time social media analytics for cryptocurrencies – determining number of social media mentions as well as sentiment on an hourly basis. This allows assessing both the current buzz about the cryptocurrency as well as its sentiment (positive or negative). Sentiment is determined by applying machine learning models on texts of social media posts.

In this post we focus on Siacoin as another case study of application of sentiment analytics for profitable trading. A few days ago it had a big jump in sentiment, see our tweet from that time:

Siacoin proceeded to make a quick return of over +20% after the sentiment signal. Real-time social media analytics tools are available as part of our advanced subscription, you can find more information at:

https://www.bittsanalytics.com/subscribe.php

For other recent examples of using real-time analytics read our recent blog posts:

Electroneum up 230% since a sentiment signal from real-time social media analytics

Ripple up more than 100% since a spike in social media mentions

Nano up more than 50% since surge in social media mentions on 11th September

 

 

Electroneum up 230% since a sentiment signal from real-time social media analytics

BittsAnalytics platform offers real-time social media analytics for cryptocurrencies – determining number of social media mentions as well as sentiment on an hourly basis. This allows assessing both the current buzz about the cryptocurrency as well as its sentiment (positive or negative). Sentiment is determined by applying machine learning models on texts of social media posts.

In this post we are focusing on Electroneum which had a big spike in social media sentiment a few days ago, see our tweet and chart from that time:

Electroneum made a rally after that initial spike from 0.0075 USD to over 0.025 USD for a return of more than 230%.

 

Real-time social media analytics tools are available as part of our advanced subscription, you can find more information at:

https://www.bittsanalytics.com/subscribe.php

For other recent examples of using real-time social media analytics check our recent blog posts:

Ripple up more than 100% since a spike in social media mentions

Nano up more than 50% since surge in social media mentions on 11th September

RChain up more than 50% since surge in social media mentions on 9th September

Fun up more than 30% since big jump in social media mentions on 12th September

Ripple up more than 100% since a spike in social media mentions

BittsAnalytics platform offers real-time social media analytics for cryptocurrencies – determining number of social media mentions as well as sentiment on an hourly basis. This allows assessing both the current buzz about the cryptocurrency as well as its sentiment (positive or negative). Sentiment is determined by applying machine learning models on texts of social media posts.

In this post we are focusing on Ripple which had a big spike in social media mentions a few days ago, see our tweet and chart from that time:

The ripple made a rally after that initial spike from 0.31 USD to 0.64 USD for a return of more than 100%. Real-time social media analytics tools are available as part of our advanced subscription, you can find more information at:

https://www.bittsanalytics.com/subscribe.php

For other recent examples of using real-time analytics read our recent blog posts:

Nano up more than 50% since surge in social media mentions on 11th September

RChain up more than 50% since surge in social media mentions on 9th September

Fun up more than 30% since big jump in social media mentions on 12th September

Fun up more than 30% since big jump in social media mentions on 12th September

BittsAnalytics offers its users real-time social media analytics, in this post we will look on application of our tools to FunFair. It surged in tweets mentions on 12th September (all times are UTC):

 

FunFair’s price has jumped by more than 30% since the surge of social media mentions confirmation powerful analytics value of having real-time social media analytics at your fingertips.

If you want to have real-time analytics always available to you, subscribe to our Advanced subscription at

https://www.bittsanalytics.com/subscribe.php