Sentiment analytics trading signal hit the Bitcoin low point almost to the hour resulting in 15% return on Bitcoin

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

It occurred on 1st April 5 pm UTC time. The price at the time was 6500 USD and it was literally the low point of this latest correction. While this kind of sentiment signal was correct in many past cases as you can read in numerous posts on our blog, this time it hit the low point practically within an hour. The price has then rallied from 6500 to of 7500 USD at the time of this blog post. That is a return of almost 15% in just a couple of days on the main cryptocurrency. If you want to improve your trading in cryptocurrencies you can start using our platform BittsAnalytics – just subscribe at www.bittsanalytics.com.

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

We track millions of social media posts and use machine learning to determine sentiment of cryptocurrencies. Bitcoin sentiment has been quite useful recently for Bitcoin price direction.

We have noticed in the past that after sentiment and optimism for Bitcoin reach a certain level, the optimism cannot sustain itself for long and the sentiment and price soon fall afterwards. This has happened in several cases in the past, see the picture below.

It has also happened in the latest instance when the sentiment went over the warning line on 24th March continued for a while but subsequently fell, with price also following. It is down around 12% from price levels of 24th March. For the statistics of previous cases see the table below and the chart.

As such, sentiment can be a really useful indicator for when to reduce positions in Bitcoin and other cryptocurrencies. See also our previous posts on these sentiment signals from the past:

Bitcoin again falls after reaching sentiment high

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

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

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

Market Sentiment Indicator is an indicator which we use to assess the sentiment of overall cryptocurrency market and is part of our framework of warning signals (* see detailed definition of indicator below). The latest warning signal from indicator came on 12th March with Bitcoin as a reference for the whole crypto market at around 9300 USD. The signal was again correct, crypto market fell afterwards, Bitcoin at the moment is 7400 USD and thus down more than 20%. This is the fourth consecutive time our warning signal has been correct, i.e., it was followed by loss of at least ten percent. See the picture below and statistics for previous warnings:

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 our market sentiment indicator and many other data and tools you can find more information about becoming our user at www.bittsanalytics.com.

* 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. For comparison chart is plotted with Bitcoin open price as a reference for general market.

Bitcoin delivers 10% in one day after rebounding on bottom pattern and our resistance BittsBands

A few days ago we noticed that Bitcoin is near the bottom pattern at 8550 USD (we use artificial intelligence algorithms to automatically detect technical patterns for the cryptocurrency market), see our tweet and picture below.

We also use a deep learning algorithm to generate possible price resistance bands, we call them BittsBands and we also added it to our tweet for Bitcoin, noting that the resistance band is stronger around 8600 USD.

As it later turned out, those values of 8550 USD and 8600 USD are indeed the levels around where the Bitcoin subsequently rebounded to now the price of 9650 USD for a nice return of 10% in around a day. In addition to advanced technical analysis just presented, our platform also provides its users with other powerful data and analytical tools. See e.g. the following post of how sentiment determined with machine learning was sending warning signals before the latest downturn of Bitcoin price:

Bitcoin again falls after reaching sentiment high

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

Bitcoin again falls after reaching sentiment high

We track millions of social media posts and use machine learning to determine sentiment of cryptocurrencies. Bitcoin sentiment has been quite useful recently for Bitcoin price direction. See e.g. the recent sentiment development below.

In a similar way as already happened about a month ago (see post below) after sentiment reached the levels from January 14th it again fell substantially.

Of course the drivers were predominantly fundamentally news, on regulation, but it seems that whenever sentiment reaches certain level and optimism some external developments happen to stop it. As such, sentiment can be a really useful indicator for when to reduce positions in Bitcoin and other cryptocurrencies. See also our post about a similar sentiment signal from the past:

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

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

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

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%.

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.