Thursday, November 30, 2023


> When investing in Crypto, we often use fundamental analysis, technical analysis and onchain analysis to predict market behavior but forget that an equally important factor, directly affects the movement of movements. of the price line, that is market sentiment. So how to analyze market sentiment? On the occasion that everyone is too FOMO memecoins like PEPE, AIDOGE, I will write a detailed article on this topic. **I, WHAT IS THE MARKET ANALYSIS? **Sentiment Analysis is a sentiment analysis, capturing the attitude of the market, helping you to assess whether the crowd of investors is feeling optimistic or pessimistic about the market, from It combines with other methods to predict future price trends and make the right investment decisions. **II, SOME TOOLS TO ANALYZE THE MARKET SPECIALS 1.Fear and Greed** This is a fairly familiar indicator to Crypto brothers, the analysis is also quite simple. People tend to be greedy when the market is rising, which leads to FOMO. Also, people often sell their coins in irrational reaction to seeing red numbers. With the Fear and Greed Index, it will help you to get rid of your own emotional overreactions. **website(figure1): **( * **Here are the milestones *** * Extreme Fear: this is a sign that investors are panicking. It could be a buying opportunity * Fear : this is a sign that a fearful investor may consider buying but the price may fall and the index may drop to extreme fear * Greed (Greed): the price is going up sharply and people are starting to notice buying * Extreme Greed: the price is going up strongly and everyone is extremely FOMO if it stays at this level for a long time then it is possible. could be a reversal signal. **2. Google Trending** **website (figure2): **(** )(**Google Trends is a very useful market sentiment analysis tool. It tells you the search traffic, the interest level of a certain keyword worldwide such as the keyword “Bitcoin, Crypto”… The way you use it is to gauge when the traffic starts to reach. to the climax. That’s because as search volume increases, that means retail investors are flocking to search for it. Perhaps they have heard their friends brag about the money they have made from Crypto. In addition, this tool can also search for the interest level of a keyword about a specific country, for example, there is a trend of China Coin or Korea Coin, then I check to see if there is a lot of interest in the coin. any? From there, look for investment opportunities and avoid risks ** 3.Santiment Social Tool** **website(Figure3): **( :// Similar to Google Trends, Santiment Social Tool also measures the interest of keywords but it is more specific than just for the crypto market. . When a new trend/narratives is formed, the level of interest in the market will gradually increase and when it will decrease when it is no longer interested by investors. ** 4.Bull and Bear Bitcoin** **website (figure4): **(** )( sentiment/)**This is a fairly popular website often used to analyze Crypto market sentiment. It shows the frequency of bullish/bearish Bitcoin conversations on social media. Data is collected from Twitter, Reddit and Bitcointalk and updated hourly. 0 is a bearish pole, 1 is a bullish pole. Combined with the above chart one can see it also cannot be 100% accurate but with this indicator showing certain price movements one can realize that sentiment often turns negative first. when prices start to fall. **5. Lunar Crush Web Indicators** **website(picture5):** (** )(**Most The websites I mentioned above are mainly about Bitcoin, but most people are interested in and invest in Altcoins a lot, I recommend a pretty good website when looking up investors’ interest in Altcoins. LunarCrush is a complete sentiment analysis platform for altcoins, up to 2000+ altcoins. LunarCrush metrics are based on analyzing activity on social media sites to then provide them with custom scores. Two metrics to pay attention to are Galaxy Score and AltRank. In addition, people can also customize the filter to their liking. **6. BMI (Bitcoin Distress Index)** **website(figure6): **(** )( -misery-index-bmi/)**Bitcoin Misery Index (BMI) is designed as a trading tool for investors to take advantage of the volatility of BTC transactions. BMI is calculated on a scale of 0 to 100, taking into account factors such as volatility and the number of successful trades in the total. The lower the index, the better the buying opportunity and vice versa. Overall, compared to the past Bitcoin price movement, it can be seen that Bitcoin BMI sometimes coincides with beautiful buy points in the market (although not 100% accurate). **7. Long/Short Ratio** **Website(Figure7):** ( )( data will let you know what investors are expecting about the asset price, expecting more price increase or decrease in price. This tip is often used by pro traders. Usually, they will look for times when the difference between LONG and SHORT is large, with one side reaching at least < 50%. Specifically, you will go long when most people are short and vice versa. But the important thing is not LONG / SHORT regardless, but you need to find the right time to enter the market. For example, when you see a large difference in the LONG/SHORT ratio, people are too FOMO in one direction, it is most likely a reversal point but combine both technical and fundamental analysis methods. In addition, if anyone has followed TNC CEO of HC-Capital on Twitter, they will know a tip when monitoring the long/short ratio to make decisions. Specifically, please review here (** ** )(**III, ANALYSIS PERFORMANCE psychiatry? **The vast majority of people have misconceptions about psychoanalysis. Many people think that when crowd sentiment is high, it's time to sell, and when they're depressed, it's time to buy. But the reality is that the crowd is not always wrong. It is only when the crowd reaches the extreme that you find them wrong. Market sentiment analysis is not the main method you rely on to trade. However, it is a very useful additional tool, it is important that it is applied properly. For example, people buy into some form of speculative asset, whether it's crypto or something in the hope of becoming rich. We believe this because we see other people making a lot of money doing so. We are also jealous of people who bought memecoins and made a lot of money so FOMO but knowing how to analyze market sentiment we take profits and leave in time. So, if we rely on crypto-psychological analysis, we can know what the crowd is thinking, to what extent, and can avoid us acting on them. You can even turn them into opportunities. **IV, CONCLUSION **All of us when it comes to the market are influenced by emotions. Fear and greed are common to everyone, but it is important to know how to control them. Investor emotions are also essential to keep the market moving. When you see a massive bearish sell-off, you don't have to think that's the day the crypto market fell. Similarly, when you see a bull run, everyone is FOMO, take a moment to analyze what happened and see if it really started a larger trend change or just is that people don't know what they're doing but FOMO. Don't be a buyer at the top and a seller at the bottom. In summary, market sentiment analysis is a useful and easy-to-access method that is not as difficult as other methods. With any investment, the more information you have, the better your chances of understanding the market. That gives you the opportunity to find the right investment strategy. After all, the market always tends to be based on supply and demand and is influenced by sentiment. Understanding market sentiment measures will give you more effective analytical tools in investing and trading.

Source: Collector



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