Sentiment analysis service Predicoin launches cryptocurrency traders

December 11, 2018 Cryptocurrency

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Markets and prices

Keeping up with cryptocurrencies often means browsing and interpreting large amounts of content from various online sources. As cryptographic markets expand and mature, information overload becomes a problem. Smart traders are increasingly looking for specific cryptographic tools that can distill noisy input data into quality information. Predicoin is such a potential solution.

Read also: Satisfy the new sentiment analysis tools that enhance smarter trading

Predicoin goes live with the "Sentscore" feature

<img class = "alignright size-thumbnail wp-image-209751″ title=”Sentiment analysis service Predicoin launches cryptocurrency traders” src=”https://news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency-Sentiment-Analysis-logo-big-150×150.png” alt=”Feeling analysis service Predicoin launches for cryptocurrency traders "width =" 150 "height =" 150 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency- Sentiment-Analysis- logo-big-150×150.png 150w, https://news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency-Sentiment-Analysis-logo-big-300×300.png 300w, https: // news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency-Sentiment-Analysis-logo-big-768×768.png 768w, https://news.bitcoin.com/wp-content / uploads / 2018 /08/Predicoin-Cryptocurrency-Sentiment-Analysis-logo-big-696×696.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency-Sentiment- Analysis-logo- big-420×420.png 420w, https://news.bitcoin.com/wp-content/uploads/2018/08/Predicoin-Cryptocurrency-Sentiment-Analysis-logo-big.png 1024w "sizes =" ( maximum width: 150px) 100vw, 150px”/>In August, news.Bitcoin.com preview Predicoin, which was therefore under development. The data analysis platform, which is now open to the public, aggregates news and social media content before extracting sentiment using machine learning. In addition to providing encrypted news and social media content, Predicoin provides its own integrated analysis in the form of "Sentscore" (sentimental score). It works as a general indicator of feeling for the cryptomarket, powered by algorithms that calculate the feeling from five verticals:

Quantity of content and context of articles from encrypted news sites
Feelings of social media (currently Twitter and Reddit) and volume of cryptography influencers
Macro and microeconomics / fundamentals of a currency (team, developers, etc.)
Technical indicators on the price of a currency
Popularity and trend characteristics of a currency

Predicoin plans to use its data sets and analysis framework to derive trends between sentiment and price. "We are still optimizing our algorithms and regularly updating updates to previous data," explained Pierre-Alexandre Picard, COO of Predicoin. "These metrics may change, but we're really excited to start seeing some potential correlations on our charts. We continue to work hard to identify models to provide the most accurate indicators to our users."

Social feeling of BCH leading to the hard fork

Measure social feeling

Although Predicoin is still in beta, tests show that the platform is quite efficient in some cases to accurately convey social trends. For example, at the height of Bitcoin Cash's recent fork, Predicoin has seen a significant increase in the volume of news and social media citing BCH. Although this result is not surprising, seeing data overlapped with those of BCH prices suggests the degree to which sentiment can be used to predict price.

This is best seen in the case of Ripple's cryptocurrency of the same name. The increase in prices of XRP in September, which was linked to the announcement of the PNC Bank partnership based in the United States with Ripple to make instant cross-border payments. Predicoin has identified the positive news published on XRP and shared several times on social media, bringing his native Sentscore to the historical maximum for ripple. The price is followed in the next 12-24 hours, increasing XRP to over $ 0.60.

The social graph of BTC is also interesting to explore, showing the feeling that falls with the bitcoin crash occurred on November 15:

The platform found a sharp decline in social media sentiment when BTC lost about $ 100. To further improve its algorithmic predictions, Predicoin performs statistical tests on the accumulated data to develop metrics that link price and social information. The goal is to ultimately develop a tool on which traders and investors can rely on asset research.

The Predicoin data analysis service currently extends to 30 cryptocurrencies, allowing enthusiasts to access and discover social patterns, check daily, weekly and monthly scores and access the content from which these scores are formulated. Generating profit in a bear market is not easy, even if it has plenty of tools and algorithms. Given the fallibility of technical analysis, however, alternative indicators need to be welcomed, either to strengthen existing business ideas or to create new ideas.

Do you think that sentiment analysis can be a valuable trading indicator? Let us know in the comments section below.

Images kindly granted by Shutterstock and Predicoin.

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Readers must exercise due diligence before taking any action relating to the company mentioned or its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

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Sentiment analysis service Predicoin launches cryptocurrency traders

Predicoin goes live with the "Sentscore" feature

Measure social feeling

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