As a continuation of our previous post on using real-time sentiment to avoid the November 6th correction we now show you how you could use the real-time sentiment of Bitcoin to reenter the position. As you can see in the chart below the sentiment quickly rebounded from the negative value of 6th November.
If you took that as a positive trading signal and reentered the Bitcoin position you could enjoy in price that followed in the following two days.
Returns of cryptocurrencies in the last 24 hours can be described with one word – green. It is quite rare to see so many of the coins rising. The big winner is Earthcoin which is up more than 170%. Not bad for one day.
We are using machine learning to calculate real-time sentiment for over 150 cryptocurrencies from millions of social media posts about them. Below is the chart of hourly sentiment of Bitcoin calculated from tweets for the last week. After days of positive sentiment it suddenly turned negative on 5th November around 22 (UTC time). At that time the price of Bitcoin was around 7430 USD. If you interpreted this as a warning signal and reduced Bitcoin exposure you would have avoided the subsequent correction which went down to 7030 USD. Great BittsSignal. In the follow up post we will show you how you could use the same real-time sentiment to get back in Bitcoin and profit again, this time from rebound of Bitcoin price. If you want to be notified please subscribe or check back soon.
After a good week the big cryptocurrencies are mostly in the negative:
There is quite a dispersion in yesterdays returns for cryptocurrencies with marketcap below around 1 billion USD. We track returns dispersion as one of the signals for the overall health of crypto market. In the 300+ million range of midcap cryptocurrencies QTUM, ZCash, OMG, XLM and Waves did well yesterday.
If you look at the chart of hourly sentiment for Monero in the last few months something changed at the end of October. While in the period before there were regular dips in the negative territory they suddenly almost disappeared as though there was a regime change. And after a few days of this new bullish regime we got a big surge in price. Nice BittsSignal.
Very interesting chart – Ethereum is gaining on Bitcoin in terms of social media mentions:
During August it was still predominantly behind but then it started to gain momentum and on 15. September for the first time (at least for a day) overtook Bitcoin in terms of mentions. Bitcoin then regained a clear advantage for some time while in the last month the social media prominence of both are again more comparable. So enthusiasts of both coins should be happy – Bitcoin is in a great rally in the last few months while Ethereum is also gaining in social media domain and in flurry of development activity.
Returns of the last 24hours are mixed. While Bitcoin is down around 1.5% others like Ethereum, Bitcoin Cash, Ethereum Classic, Dash are up. Ethereum Classic has actually made over 20% over the last 24 hours.
EOS is really an outlier in the last weeks return. Bitcoin Cash also made a nice return in a week.
Sentiment of ICO posts in the last few months. Holding up well after reaching low on China ban. China ban almost halved sentiment of ICO posts overnight. But since then it has nicely recovered. The number of posts about ICO is however down from the heights of August. That will be the topic of an upcoming post.