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Analyze Bitcoin Prices Using Market Sentiment Tools

#cryptocurrency #sentiment #bitcoin #prices


“Sentiment is an AI model trained with a large number of customer interactions to measure customer satisfaction. It is a proven predictive indicator of customer satisfaction such as transactional NPS or CSAT surveys, and can be used to analyze processes, behaviors, products, and more for optimal customer experiences and operational efficiency”–Paul Ebeling

Investor attitude combines many fundamental and technical factors, including price history, economic components and national and world events. The most popular indicators for analyzing market sentiment are the Fear and Greed Index, social activity, Google trends and others.

Analyzing Bitcoin with Fear and Greed Index

Note: the analysis in terms of the Fear and Greed Index, as some people continue to be skeptical about its readings and declare that there can always be much lower and can always be much higher. I disagree with such statements since a trader must adhere to the trading concept of a particular indicator.

An area between 0 to 20 is considered fear and oversold, where Bitcoin needs to be accumulated. An area between 70 and 100 is deemed greedy when caution is necessary. This method is more suitable for medium and long-term investors.

These methods are of high value since the accuracy of their signals is relatively high. And that the analysis of Bitcoin using social activity and Google Trends generates valuable short-term signals suitable for day traders.

Again, the Fear and Greed Index is more suitable for swing traders and long-term traders. Feel free to develop and apply your methods for analyzing cryptocurrencies, taking into account the social activity of traders.

Have a prosperous day, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.