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Sentiment Analysis

In-depth Sentiment Analysis: BTC, ETH, LTC, NEO & MATIC

26 Apr, 2021
Martin Petkov

Hi and welcome, everyone. It's Martin here with CryptoGains. Happy Monday, and we're beginning the week with an in-depth sentiment analysis of major cryptocurrencies.

Beginning with Bitcoin, what we can see is that the weighted social sentiment, compared to Bitcoin's price, dropped significantly, crossing below zero. As we experienced that substantial drop to below $50,000 in Bitcoin, that indicates that market participants are now expecting more of a bearish rather than a bullish outcome. And if we continue our analysis, we can see that the very same dynamic is unfolding in Ethereum, which, after reaching a new all-time high above $2500, again rejected that with a very steep decline, which is echoed in the social sentiment of Ethereum, as well.

Interestingly, this time we can observe the same thing across Ripple, Chainlink, Dogecoin and Uniswap, as well, which is just another confirmation of something that I have been seeing for a long time in the CryptoGains videos and that is that the crypto market tends to be very highly correlated in the vibes/ moves in Bitcoin are reflected across the entire spectrum of cryptocurrencies.

In addition to that, we can see that the perpetual contract funding trade, which indicates the dynamics in the futures market has also dropped to very sustainable levels, and it rejected a very sharp increase, which coincided with or actually even preceded a little bit, the all-time highs in Bitcoin. This suggests that the futures markets are cooling off, as well, and now the bullish sentiments are not as high as they used to be.

Next, we can see something which could be seen as a disturbing sign, and that is that searches for 'bear market' on crypto social media have reached a new high, which we haven't observed since October 2020, which is suggesting the overall vibe is rather bearish, at the moment.

And finally, we can see that also the inflows of exchanges of major cryptocurrencies, including Ethereum, UniswapSushiSwap and over the past 30 days are reaching very high levels, and this may indicate that market participants are going to sell them in the near term. However, there's some optimistic news, and Polygon, one of the best-performing cryptocurrencies in the year, is reaching new all-time highs. And we're going to discuss an interesting trading idea about it.

Now let's begin with Bitcoin on the technical chart, as we usually do. The critical period level for Bitcoin is $52,500. Above that level, to me, there is an opportunity for long positions, with targets at $53,300, the nearest resistance level, and then at $54,400. Conversely, if we break below $52,500, the downside will prevail, with targets at $51,700 and $51,000 based on horizontal support and resistance lines.

Interestingly, on the daily chart, what we can see is that we dipped into oversold territory in Bitcoin, which hasn't happened for a very long time, and certainly not throughout this year. So, on the one hand, we can interpret that as a good opportunity to initiate long positions, considering that the market movement was very far outstretched on the short side.

Now let's move to Ethereum. The pivot point for Ethereum is $2430. Above that level, opportunities for buying Ethereum, with targets at $2490 and $2545. Conversely, below $2430, the downside is going to prevail, in my opinion, with targets at $2355 and $2295.

Now we're moving to Litecoin. In Litecoin versus Tether, I'm waiting for prices to break above $240 before initiating long positions, with targets at $243 and then $250. Conversely, once we break below $240, it's more than likely that the downside will prevail, taking us down to $235 and $222. So, this is on the short side for Litecoin.

Now, another idea comes from NEO. In NEO versus Tether, the pivot point is $86. Above that level, based on horizontal support and resistance lines, I'm seeing the first target on the long side at $89.50 and then $92.85. Conversely, if we're below $86, it's more than likely that the downside will prevail, with targets at $83 and then subsequently at $80.

And the final idea, of course, comes from Polygon. Looking at Polygon versus Tether on the one-hour chart, based on the data that we have available on StormGain, we are reaching new all-time high territory. To me, $0.50 is the critical pivot level. It used to be strong resistance, which is now overcome, and because we don't have data going forward, what I'm using here is the Fibonacci theory. And some of the most common extensions going forward, that's $1.718, based on the previous high, and then $2.

So based on these levels, above $0.50, we could be looking for targets on the long side at $0.5683 and $0.6329. Conversely, below $0.50, it's more than likely that we could see further declines but have strong support on the short side or an opportunity to take profit if you have initiated a short position below $0.50 or $0.465.

So these are all the ideas for today. Keep learning with the video education section in the CryptoGains marketing site subsection. Remember to join the Crypto Signals Made Easy channel in Telegram for lots of insightful articles and trading ideas.

Thanks for joining me today. Trade wisely, and I'll see you soon.


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