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