For investors trying to predict the movement of the market, the more data that can be analyzed, the better. Trend analysis and fundamental analysis are the starting point, but there are other hints scattered over the network that lie outside the usual search parameters.
One of them is social analysis, which includes an understanding of the general mood of the public for crypto currency, according to reports in social networks such as Twitter. There is a bot that does this on an hourly basis, analyzing which coins are getting sympathy, and which ones are becoming hateful.
Reports bot Watson's Reports
Twitter now has a lot of bots. While some of them send out spam and spread false news, others are extremely graceful. Watson's Reports is a bot that publishes hourly updates about what people are saying about crypto-tweets on Twitter.
The bot, specializing in trend analysis, would be developed by the analysis center given by Crypto Watson. Watson's Reports covers the most frequently mentioned crypto-currencies, and analyzes analyzes the prevailing moods to identify which coins have positive and negative references.
The latest data at the time of publication show that bitcoin is leading with more than 3'000 mentions. Waves (1,491), Ethereum (1,407) and Ripple (1,030) follow bitcoin. After them go Litecoin, Neo, Verge, Tron, Starell and Bitcoin Cash.
Although bitcoin always leads, other top-10 crypto-currencies are mentioned the more often, the more often they appear in the news. But just because someone speaks about the crypto currency, this does not mean that he has it or plans to invest in it. In fact, some of the most popular coins are also the most hateful.
Research work published in December entitled "The mood of the market helps to explain the price of bitcoin", examines this trend in more detail. A second study concludes:
The change in the price of BTC can be accurately explained, using the volume of market sentiments about bitcoin, which is positively evaluated in social networks. It is assumed that the price of BTC is mainly the result of a balance of demand and supply of buyers and sellers, which is largely influenced by market sentiment. It is likely that the mood of the market is also strongly influenced by the price itself, forming a circular and bidirectional reflexivity.
Better bad than no way
According to the bot Watson's Report, bitcoin has the greatest number of negative sentiment sentiments (11.5%). This should be expected given the dominance of bitcoin; the enemy will always hate him.
In the second place on the positive and negative attitude of users shows interesting results. The coins are most favorably mentioned: Sia (20.6%), Zclassic (19.5%) and Digibyte (18.7%). Ubiq and Stellar are among the top five coins, judging by user feedback.
From the point of view of negative references , after Bitcoin, there are ether (6.1%), Litecoin (5.3%), Bitcoin Cash (4.9%) and Tenx (4.6%).
Since the bot updates its analysis every hour, these trends are quite dynamic, and many crypto currency, except bitcoin, regularly change places. Regardless of whether the social analysis is the arbiter of market trends, investors speak out about them.
Will they be replaced by analytics bots?
Public databases, such as Twitter, which provide gigabytes of data in real time, are ideal for processing them by bots. Developers create bots to analyze the profits of investors, if they, for example, automatically bought and sold on the recommendation of traders on Twitter. Other bots will report when the purchase amount for the coin suddenly increases, or in the case of a bot for Telegram called Crypler, when the coin appears on the exchanges.
As the capabilities of Artificial Intelligence increase and the use of bots, traders will increasingly base their work on signals from computers. So far, at least, the best traders still rely on knowledge, intuition and strong nerve-attributes that are not inherent in bots.