Early warning of Bitcoin price movement

In the last week the price of BTC has risen approximately 8%. Several analysts are predicting that this is the beginning of a reversal of Bitcoin’s fortunes. It has previously lost almost 70 percent of its value in the past year.  There was also a widely circulated news post reminding readers that a future bitcoin halving event will in all likelihood increase bitcoin’s value.

Example of the relevant social media posts:



How can Sentiment Analysis help?

Causality Crypto Sentiment Alert Chart showing price history of Bitcoin (BTC)

The chart above shows that sentiment for Bitcoin was fairly neutral until end of January when general chatter picked up.  Soon there was an increase in positive social chatter, just prior to a healthy price hike.

Imagine if you‘d an early warning of what was about to hit BTC before most of the market?  With Causality’s new crypto sentiment alerts – you can.Zoomed view of Causality Crypto Sentiment Alert Chart showing price history of Bitcoin (BTC)

If we zoom in on the above chart, we can see that if we had set a Causality crypto sentiment alert on BTC to warn when positive post volume increased by more than 15% in the last 24 hours, the alert would have been triggered at 6pm on Feb 7th (UTC) when BTC/USD was at $3,417.52.  In fact the alert would have been triggered repeatedly for 1.5 days while price hovered around this mark. This was just prior to the price rising 8.2% to $3,697.88. So it would have given the astute trader more than enough time to move before most of the market could react.

Also published on Medium.