Analysis: The 14 coins with scorching sentiment as Bitcoin remains stable

Another week of Bitcoin stability, and another week of strength for the Alts.

Take away the Tether mess from a few weeks ago, and Bitcoin has been trading within about a $300 USD range since the middle of September. That’s allowed the Alt coin market to go on a nice little run after months of decline.

But the big question is, how long will it last? Have we seen a $BTC bottom for the short term, or are we just delaying the inevitable leg down? It’s getting harder and harder to tell. 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)_/¯. 

The chart above shows sentiment on $BTC and the Alt market for the last two months.

While the price has remained stable, sentiment on $BTC has become a lot more erratic in recent days. The 150 influencers I track seem on edge, and every time Bitcoin so much as sneezes, it seems like sentiment completely shifts.  Something’s bound to break sooner or later, but folks, at this point, seem pretty unsure of what will happen next.

In the meantime, that’s fine news for the Alts, which during the same span have seen money flow back into the market and prices rise. So long as $BTC remains a stablecoin, there’s no reason to think that’ll change.

Some notable things on the Alt chart this week.  Both $LTC and $HOT are in the top 5 for the second week straight without a major price move. Additionally, $ICX made its way into the top 10 for the first time in months.

But keep a close eye on $BTC, as a significant move could have a pretty dramatic effect on the rest of the market pretty quick.

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.

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.