HomeCryptoBack to positive the cryptocurrency sentiment

Back to positive the cryptocurrency sentiment

According to cryptocurrency data and analysis company Omenics, cryptocurrency market sentiment seems to be turning positive again, after a few weeks in which major cryptocurrencies suffered substantial declines from the highs reached in November.

Crypto sentiment from neutral to positive

The figure can be deduced from the data that emerged from the weekly Sentscore, which measures precisely the sentiment of the market. The value would have stood at 5.16 last week, up from the 4.86 recorded a week ago. 

All major cryptocurrencies (35 are monitored by Omenics) measured would have recorded an increase in this figure, with Bitcoin and Ethereum leading the way, both moving from the neutral to the positive zone.

Bitcoin and altcoin sentiment

Bitcoin in the last 24 hours would even move with a score of 7 to the very positive zone. 

However, as for cryptocurrencies outside the top ten, analysts at Menics report that the best was Yearn.Finance (YFI) with a 7-day sentscore of 5.7, while Nem (XEM) scored the worst with a sentscore of 3.8.

The figure would also be bolstered by the fact that Bitcoin in the past week has been trading above its 200-day moving average (currently at $46,386), which suggests that selling pressure may be easing in the near term.

“The previous two times that BTC challenged the 200-day moving average served as good buying opportunities, as the market remained structurally bullish but was simply over-leveraged.” 

That’s what Sean Farrell, digital strategist at Fundstrat Global Advisors, wrote in his weekly newsletter.

The fact then that digital assets considered highly speculative, such as Ether, Matic, and Solana, outperformed Bitcoin would suggest greater risk appetite on the part of investors, according to the analyst.

crypto sentiment
Several factors contribute to market sentiment

How crypto market sentiment is measured

Market sentiment is basically an assessment of traders’ attitudes and emotions about a particular asset or investment.

It is usually measured by sounding out social channels, forums, analysis, and research inherent in a particular moment in time the feelings and ideas of investors about the market for a particular asset or commodity. 

Often in the world of cryptocurrencies, reference is made to FOMO (fear of missing out): this is the particular sentiment of investors who buy a fast-growing security en masse for fear of missing an opportunity.

As far as cryptocurrencies are concerned, to measure these feelings, we analyze several indices, ranging from social comments by influencers, capital movements by big investors (in jargon whales), funding rates, bull&bear indices, technical analysis, TVL regarding DeFi and altcoin movements.

All these data together can give basic information on what is the sentiment of the asset at a given time, then try to predict the future movements of the prices of the same.

Vincenzo Cacioppoli
Vincenzo Cacioppoli
Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.