Our Sentiment Analysis Metrics
to be on the lucid side of the market
Fear & Greed Index
Buy fear, and sell greed. This is how it works in the financial markets. When everyone panics while selling, it often offers buying opportunities for the more lucid.
Google search data gives simple clues about the psychological trend in the market. The more Bitcoin is searched per day, the stronger the current interest.
The evolution of the number of followers on the Twitter account of the various crypto projects makes it possible to measure the strength of a community
Dominance gives the proportion of mentions of a crypto on social networks, compared to a pool of several most discussed projects.
The volume displays the number of mentions of the crypto on a panel of social media channels. A high social volume can indicate the hype of a project.
Social Networks Sentiment
This section provides the proportion of positive and negative feelings about crypto projects. Those data are very useful to properly monitor your favorite cryptos.
Funding rates are periodic payments to long or short traders based on the difference between the perpetual contract market and the spot price.
This shows the number of futures contracts held by market participants at the end of the trading day. It can be used to determine professional market sentiment.
What is Sentiment Analysis?
Beyond the technical aspects, financial markets are often governed by the feelings of its actors.
Often the market tends to go against general sentiment, its goal being to hurt as many people as possible.
Some assets experience over-enthusiasm and overconfidence from their investors. And it's important to note that these feelings don't always reflect the fundamentals of a project, but can significantly affect the price.
Market sentiment analysis is a kind of research that uses this type of information to try to predict price movements.
Types of Sentiment Analysis
There are several types of sentiment indicators, which could be split as follows.
How does the market play with your emotion ?
Take here the example of the famous Dogecoin ($DOGE).
A random tweet
Elon Musk tweet about Dogecoin.01
People FOMO in
Fear of missing out sentiment grips investors02
Dogecoin to the Moon
Dogecoin price increases 40% in one hour03
People get Rekt
The price drops suddenly by 45% in 15 minutes04