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Sentiment analysis; BTC, ETH, LTC, XTZ, MATIC ideas

07 Jun, 2021 Martin Petkov
Sentiment analysis

Hello and welcome, everyone. It's Martin here with CryptoGains. Happy Monday! And, today, we're looking at sentiment analysis of Bitcoin and the overall crypto market. This is data from the analytics platform Santiment. And first, we're looking at the social volume of Bitcoin, which, after some hype in May and after the big crash on 19 May, is now normalizing, suggesting that there is not as much activity or interest in Bitcoin at the moment.

In addition to that, what we're observing is that the weighted social sentiment for Bitcoin is currently negative, which is actually a good thing because longer-term, we can see that some of the better opportunities to initiate long positions in Bitcoin have been whenever we have had dips in the weighted social sentiment for Bitcoin into negative territory.

However, this is also the picture across all major cryptocurrencies. You can see Ethereum in the top left, Ripple in the top right, Cardano in the bottom left and Polkadot in the bottom right — all currently with negative social sentiment, suggesting, overall, the market mood is quite depressed. Perhaps these cryptocurrencies are somewhat undervalued, presenting good buying opportunities.

In addition to that, the BitMEX Perpetual Contract Funding Rate has turned negative, suggesting that probably the shorts or the bears in Bitcoin with open short positions are taking charge and are dominating the market at the moment. What is quite interesting to observe is that the number of active addresses has dropped below 1 million, and it has stayed practically all the time below that level, after 28 May, which wasn't the case before that when we used to have Bitcoin active addresses most of the time above 1 million. This notable decrease in active addresses suggests that the short-term recovery may be slower than anticipated.

Conversely, however, the picture in Ethereum is quite different. Despite the drop, the number of active addresses has recovered quite nicely. And another huge spike, another huge increase in Ethereum prices may even take the active addresses of Ethereum higher than Bitcoin, which will be something that happens for the first time in crypto history. Now let's move to the technical charts and see how we can trade these ideas.

Beginning with Bitcoin versus Tether, at the time of filming this video, it comes with a sell signal, as indicated by this red arrow here. Below $36,250, I'm seeing opportunities to sell Bitcoin, with targets at $35,600 and $35,000. Conversely, above $36,250, buying Bitcoin may be a good idea, with targets at $36,800 and $37,800.

Now we're moving to Ethereum. From my perspective, the pivot point in Ethereum sits at $2760. Above that level, good opportunities to buy, with the first target at $2810. And then, longer-term, $2880. Conversely, however below $2760, like we are at the moment of filming, more than likely, the downward pressure will prevail, and good reasonable targets for short positions could be $2670 and $2600.

Now let's take a look at Litecoin. At the time of filming, Litecoin also comes with a sell signal on the StormGain platform. And for prices below $178, to me, there's a good opportunity to initiate short positions, with the first target at $173 and then $168. Conversely, however, if we're able to clear $178, we could be initiating long positions, with targets at $182 and $192. 

Now, the final two ideas come from, first of all, Tezos. Tezos is one of the best performers of the last 24 hours. And over $3.90, which is the critical junction here, I'm stressing long positions. The first target, $3.965, which could be overcome by the time this video is published, but at the time of filming, we can see that it comes with the buy signal. And the next reasonable target, of course, is $4.10, which is near the mid-term resistance level. Conversely, however, if prices break below $3.90, we could see declines to $3.80 and then $3.67.

And finally, let's take a look at Polygon. Polygon also performed strongly in the last 24 hours. To me, the pivot point sits at $1.65. Above that level, opportunities to buy Polygon, with the first target at $1.76 and then $1.88. Conversely, below $1.655, selling Polygon, with the first target at $1.60 and then $1.525.

Thanks for joining me today. Keep learning with the video education section in the CryptoGains Market Insights subsection. Importantly, remember to join the Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Thanks for joining me today. Have a good week, and I'll see you soon.

Bye-bye.

 

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