Analysis: 11 coins with fresh sentiment while Bitcoin remains stagnant

I guess I was naive to think the Tether dump and Bitcoin pump would shake us out of the doldrums and get the big boy to finally pick a direction.

Alas.

But that’s not bad news for the Alt market. As $BTC continues to hover in its ever narrowing range in the mid $6000s, many Alts are seeing some nice, and sustained, bullishness for the first time in a while.

Unlike in previous Alt runs, this time it comes with the ever-present anxiety over $BTC and the fear it’ll dump.  Let’s look at the market charts.

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

$BTC’s sentiment went negative on Sunday for the first time in a few weeks, but that’s not necessarily a bad thing.  As I mentioned last week, Bitcoin has recently been posting it’s biggest losses after a peak in sentiment.

And after the $USDT-influenced pump, we just haven’t seen that. While sentiment has been positive it just hasn’t reached the heights that we’ve seen over the last few months before a major drop.

I’ve been seeing more of the 150 or so influencers (who weren’t randomly banned by Twitter) I follow have been cautiously suggesting we may be out of the woods, for 2018 at least. Even with those additional statements, there’s not enough confidence behind them to make much of it yet.

In the meantime, sentiment on the Alt market remains generally positive. I’d expect that to continue if $BTC maintains course, but that’s a big if. One thing that jumps out in particular is $LTC topping the charts after having abysmal sentiment for months.

Trade safe.

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.

Doesn’t mean the trend can’t continue, but give it an extra bit of research before you dive in.

Look before you leap on these ones:

I’m going to integrate this more elegantly in the coming weeks, but wanted to start somewhere. 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.