Lunyr up more than 100% in one day since social media mentions surge

We track millions of social media posts and use machine learning to determine sentiment and number of mentions for 200+ of cryptocurrencies in real-time. Below are hourly number of tweets mentions for Lunyr. The tweets mentions jumped by more than 8 times February 23 at 5 pm UTC time. For us that was a huge bullish signal.  And indeed, over the next 24 hours the price jumped by more than 100%. We often find that the social media buzz is ahead of price.

 

Since closing the sentiment gap, Bitcoin outperformed Ethereum by around 15 percentage points

As we have wrote in our past blog posts we use our comparison analytics for relative selections of coins. We are using it especially for relative allocations between major cryptocurrencies. In this blog post we revisit the relative allocation between Bitcoin and Ethereum as there were recent changes that warrant a revision.

In our previous blog post on this topic we wrote about an outperformance of 40 percentage points of Ethereum since it opened a sentiment gap on Bitcoin on 9th January:

Ethereum outperformed Bitcoin by 40 percentage points since opening a gap in sentiment – use of comparison tools in BittsAnalytics

Around a week ago there was  sharp reversal in this sentiment dynamic and Bitcoin after a few days  again closed the sentiment gap with Ethereum on 14th February. See the chart below. Since this closing of the gap Bitcoin outperformed Ethereum by 15 percentage points confirming that the sentiment comparisons can be powerful trading signals for relative selections.

The use of sentiment analytics for relative selections is just one of many ways you can improve your cryptocurrency trading with our BittsAnalytics platform. You can find more examples here: http://www.bittsanalytics.com/blog/category/bittssignals/ or you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php

Bitcoin on 17th February reached the sentiment level last seen on 14th January

We track millions of social media posts and use machine learning to determine sentiment of cryptocurrencies. Bitcoin sentiment has been rising since 6th February and has yesterday on 17th February reached levels last seen on 14th January. Would not be surprised if the rally stops a bit and the price consolidates for a while.

We assess this as a bit of a pause in price rally that started with a huge sentiment reversal on 6th February when the price was just 6200 USD. Read more about that bullish sentiment signal at around 6200 USD  in our blog post from that period:

http://www.bittsanalytics.com/blog/2018/02/07/trading-hourly-sentiment-reversals-in-recent-downturn-around-30-return-on-bitcoin-from-6th-to-7th-february-part-ii/

If you want to use data like this as an additional source of information to improve your cryptocurrency trading, you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php

Stratis Roadmap Update well received – example of using BittsAnalytics Tagclouds and Themes analytics

As an example of how we use BittsAnalytics platform to get immediate feedback about a particular initiative of a cryptocurrency let us take as an example Stratis yesterday. If you display the chart of daily sentiments on our platform and then click on the last day of the chart you get tagcloud from social media posts on that day as well as themes of similarity from the same posts. You can immediately see that the main topic dominating discussions is the roadmap update. And since the sentiment jumped we can assume that the community took the roadmap update positively and infer that it should be positive for the price of Stratis.

It is also interesting that our NLP analysis of themes discussed returns these words: buy, now, severely, undervalued, dip, want.

If you want to use this and many other kind of analytics tools and data to improve cryptocurrency trading read more about platform at  www.bittsanalytics.com.

RChain up 75% since sentiment surge on 8th February

We track millions of social media posts and use machine learning to determine sentiment for 200+ of cryptocurrencies. We can become interested in a cryptocurrency for many different reasons based on our data, three such examples are:

  • cryptocurrency had a large jump in tweets mentions
  • it had a large jump in sentiment as determined with machine learning from tweets about it
  • it had a large increase in both sentiment and tweets mentions number

We are especially interested in coins which are below the top 10 in terms of market cap but still among the top 100 (those that are below 100 have smaller number of tweets and the sentiment can thus be less statistical significant). One of the latest examples for second kind of signal was Rchain. It had a surge in sentiment on 8th February, see chart below. Since then its price increased around 75%.

We also wrote about the surge in RChain sentiment in our twitter account in recent days:

twitter.com/bittsanalytics/status/963205304233156609

If you want to use data like this as an additional source of information to improve your cryptocurrency trading, you can get it at our platform www.bittsanalytics.com.

Trading hourly sentiment reversals in recent downturn – around 30% return on Bitcoin from 6th to 7th February

We track millions of social media posts and use machine learning to determine sentiment for 200+ of cryptocurrencies in real-time. Hourly sentiment can provide opportunities for profit especially in turbulent times like the last few days. One signal we look for is a prolonged fall in hourly sentiment followed by a sharp sentiment reversal in positive direction, like seen in the chart below for Bitcoin:

It occurred on 6th February 6am UTC time. The price at the time was 6200 USD and has since then rallied to the price of 7700 USD at the time of this blog post. That is a return of almost 30% in around a day. Find out more about our data and analytics tools at www.bittsanalytics.com.

Trading hourly sentiment reversals in recent downturn – 15% in around one day on Bitcoin

We track millions of social media posts and use machine learning to determine sentiment for 200+ of cryptocurrencies in real-time. Hourly sentiment can provide opportunities for profit especially in turbulent times like the last few days. One signal we look for is a prolonged fall in hourly sentiment followed by a sharp sentiment reversal in positive direction, like seen in the chart below for Bitcoin:

It occurred on 2nd February 1pm UTC time. The price at the time was 8050 USD and then quickly rallied for the intermediate high of 9377 USD for a return of over 15%.

Status outperformed Bitcoin by around 30% percentage points in three days since sentiment surge – another example of relative strategies

In periods of sideways movement in prices or downturns, the relative outperformance or underperformance of one cryptocurrency in comparison to another becomes much more important.The relative selection or relative strategies can thus contribute substantial value to your portfolio value.

In this post we would like to present another example of using BittsAnalytics platform for relative strategies. We calculate sentiment with machine learning from tweets about individual cryptocurrencies. Status was one of the cryptocurrencies which even during the downturn displayed a surge in sentiment on 3rd February, see e.g. our tweet from that time: twitter.com/bittsanalytics/status/959984730455363584. Status sentiment continued to increase, see the latest sentiment chart below. Since sentiment surge on 3rd February, Status returned 5%, while Bitcoin lost around 25%. Status thus outperformed Bitcoin by around 30 percentage points. Even in downturns there is still a wide dispersion in returns of different coints and employing relative strategies can potentially lead to better overall portfolio returns.

The use of sentiment analytics for relative selections is just one of many ways you can improve your cryptocurrency trading with our BittsAnalytics platform. You can find more examples here: http://www.bittsanalytics.com/blog/category/bittssignals/ or you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php

Introducing market sentiment indicator that helped avoiding losses in the current and past downturns

In this post we are introducing a new market sentiment indicator which we recently made available to users of our platform BittsAnalytics, Market Sentiment Indicator or MSI. In it is one of our indicators which we use to assess the sentiment of overall cryptocurrency market and is part of our framework of warning signals. It helped avoiding losses in the current and past downturns and we decided to make it available to our users.

Market Sentiment Indicator or MSI is based on sentiment of individual cryptocurrencies, with sentiment determined with machine learning from tweets mentioning the particular cryptocurrency. It is defined as the percentage of 10 largest cryptocurrencies whose sentiment was positive on a given day. It is a daily indicator, we will later also launch a real-time version of this indicator. Historical chart of MSI is presented below.

MSI of 100% (threshold values shown as red marks on chart) indicates excessive optimism or extreme relief optimism in the market making it susceptible to possible (further) downturns. We are interested in extremes when MSI reaches 100% and take that as potential warning signals. Bitcoin price is shown as a reference for the general market direction and returns. As of 2nd February 2018 there were four cases of MSI reaching 100%. In the first case the market made moderate gains over the next week. In other 3 cases the market made substantial losses over a week or longer after threshold. The losses (given in bitcoin returns as reference) were: -15%, -28% and -41%. Indicator also gave a warning signal within one day of Bitcoin reaching all time high close price. It also gave a signal before the latest downturn.

Market Sentiment Indicator Thresholds of 100% should not be used in isolation and would  ideally have more data points for better statistical significance, but we like it as another useful indicator for assessing the market sentiment. Over the next weeks we will add several more market indicators to our platform BittsAnalytics.

We believe that making profits in cryptocurrencies markets is becoming harder and the winners will be those with better data and better analytical tools. That is what we provide our users with our BittsAnalytics platform and if you want to start using MSI and many other data and tools you can find more information about becoming our user at www.bittsanalytics.com.

 

 

Ethereum outperformed Bitcoin by 40 percentage points since opening a gap in sentiment – use of comparison tools in BittsAnalytics

In this post we would like to show one way of how to use comparison tools in BittsAnalytics. In periods of sideways movement in prices or downturns, the relative outperformance or underperformance of one cryptocurrency in comparison to another becomes much more important. Any tools or data that can help you with relative selections provide potential added value.

As an example we chose the comparison between two of the biggest cryptocurrencies, Bitcoin and Ethereum. The data we are interested in are daily tweets mentions of both as well as sentiment calculated with machine learning from tweets about them. As you can see in the chart below, Ethereum has opened a gap in sentiment on 9th January and maintained it since then. Since that time Ethereum has outperformed Bitcoin by around 40 percentage points. Note that Bitcoin substantially increased the lead in tweets mentions but still lagged behind in price. So the buzz itself is not necessarily indicative of the price direction, the sentiment of buzz seems to matter though.

The use of sentiment analytics for relative selections is just one of many ways you can improve your cryptocurrency trading with our BittsAnalytics platform. You can find more examples here: http://www.bittsanalytics.com/blog/category/bittssignals/ or you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php