Smoking hot sentiment: The top 12 tokens this week

Is the bloom coming off the Alt market?

This past week was far less active (if your name wasn’t $BAT) among Alt coins, which could signal our nice little bullish turn beginning to swoon a bit.  I noted last week in my column that sentiment had faded a bit on Alts, even as many were still performing.

Now, that doesn’t mean anything is really doing terrible, we’re just not quite seeing the enthusiasm we did at the start of October.  Let’s look at the charts.

Disclaimer: I wrote this on Sunday night after close, so if something crazy happened between then and publication ¯_(ツ)_/¯. 

We really just haven’t seen the same consistent bullish sentiment we saw in the Alt market for much of October.  And the decline I noted last week continued through the start of November.

Bitcoin meanwhile, remains in purgatory.  This remains a good thing for the Alts while it does, as the Alt market always benefits from a stable $BTC.  Sentiment on Bitcoin has been angled slightly downwards for the last few weeks, as has the price, but nothing really jumps out.

One has to assume we’ll see a bigger move sometime in the not-too-distant future, but as predictions come and go, the more than 150 influencers and traders I follow seem more and more inclined to just watch and wait.

Bitcoin is getting mentioned an average of 26 times a day for the last week among this cohort, which is the lowest the 7-day average has been since I started tracking things in the spring.

The 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.

Warning Signals (New)

As I’ve been mentioning in recent weeks, high sentiment doesn’t always mean a bull trend is coming. It can also mean one has peaked.  So from this point forward, I’ll be noting any coins in the top Alts that have posted significant gains in the week prior.

This week I don’t actually have any that qualify.  If you were to watch out for one it’d be $WABI, which had a great move last week but has since cooled off. To the list!

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The Data

As always, here’s all the coins I collected data on this week.

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.