The fine 9: The hottest coins this week using sentiment analysis

Things are getting interesting.

Bitcoin has been ranging for quite a while now and as that’s happened, the 150 or so crypto traders and influencers I follow have started to choose sides. Bull or bear?

For most of the month, folks have been fairly neutral on where they think Bitcoin is going next. No longer. But things are very far from consensus.

Let’s first look at the sentiment of BTC vs the Alts.

Note: The chart above shows sentiment for $BTC and a combination of the top 20 Alt coins/tokens as of this writing on CoinMarketCap. 

The Alt market has clearly taken a bullish turn in the short term, as tends to happen during weeks when $BTC is stable.  But sentiment on Bitcoin, save from one day, has been almost dead neutral for the last week plus.

That may seem uninteresting, until you add one variable: Passion.

In addition to tracking how people feel about coins, I also track how strongly they feel that way using a measure called magnitude.  And boy do people feel strongly about $BTC these past few days.

It tells us a few things:

A) The cohort of influencers and traders I follow are pretty split on what will happen next, but..

B) They generally feel very strongly about what’s going to happen next, a good indication that we’re nearing some kind of decision point.

Interesting times, indeed. Trade safe.

Top Alts

These coins/tokens had the highest power rating in my analysis this week. The power rating is a weighted calculation taking into account sentiment, volume and the number of unique users who mentioned a coin. Generally, I eliminate any coins mentioned by less than 3 individual people as I don’t feel it would be representative of a trend.

You can always find my methodology at the bottom of my posts or pinned to the top of my Twitter page, where you can also find a legend for my charts.

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The Data

As always, here is all the coins I collected data on this week. If you’d like to see a chart for any of these, just @ me on Twitter @FomoCryptoDojo

Methodology

Each week, I scrape the Twitter accounts of some of the crypto world’s favorite influencers, traders and TA folk. I run a sentiment analysis to see which coins they are mentioning positively, neutrally and which they are mentioning in a negative light.

I also take in data on unique influencers, retweets, favorites, volume and strength of feeling in sentiment.

I calculate power by through a weighted formula that takes into consideration volume, number of unique influencers and sentiment. The higher the score, the better, the lower the worse.

This isn’t financial advice, just my own way of trying to make sense of what’s out there. And as with most things, the more data I collect, hopefully, the more interesting it’ll be. This is a work in progress. Please leave suggestions on how to make it better. I imagine if I keep up with it, I’ll be able to expand a bunch of the analysis, but I wanted to start somewhere.

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