Twitter sentiment is widely used to predict the returns of BTC, BCH, and LTC and other cryptocurrencies. Twitter have been disruptive in terms of its potential to establish the idea of unprecedented returns. The predictive power of Twitter is already a major consideration to assess the response to several events and its impact in the financial markets.
A study published under the title, The predictive power of public Twitter sentiment for forecasting cryptocurrency prices in Science Direct by Olivier Kraaijeveld and Johannes De Smedt reveals that “By using a cryptocurrency-specific lexicon-based sentiment analysis approach, financial data and bilateral Granger-causality testing, it was found that Twitter sentiment has predictive power for the returns of Bitcoin, Bitcoin Cash and Litecoin.”
The paper further states, they have used a cryptocurrency-specific lexicon-based sentiment analysis approach, financial data and bilateral Granger-causality testing. Ultimately, they state that it was found that Twitter sentiment has predictive power for the returns of Bitcoin, Bitcoin Cash and Litecoin.
Sina Estavi, CEO of Bridge Oracle tweeted: “Bitcoin (BTC) is eyed by major investment management giants. Many are becoming bullish on Bitcoin and bearish on Gold.”
When investing, everyone well know that it is important to buy during the lows and sell during the highs. Which high and which low is practical for investment is the point in issue.
Some of the top Bitcoin sites where crypto investment enthusiasts flock in are Coinbase, Gemini, BlockFi, Robinhood, eToro, Bitcoin IRA, Hitbtc.com, Binance, Kraken, Coin mama and several others.
Coinbase is one exchange where there will be an outrage of website anytime there is a spike in Bitcoin price and volume. This is because of the busy trading periods.
In the current scenario analysts have given out a warning about Bitcoin price as the whales are cashing out on their profits. If the support levels are lost there is likely an opportunity for the price to drip down. There has been weeks of significant gains from BTC and the token is entering a consolidation phase. Many of them expect the token to break past its all-time high by the end of the year. It is expected that the price will face resistance at $20,000.
Reportedly, Grayscale, who is the largest crypto asset manager are continuing to buy Bitcoin for their customers at a record pace. Very recently Grayscale pointed to how investors, major companies and even the central banks are revisiting the digital currencies. Those who have understood Bitcoin well are playing around it. While many are contemplating whether to invest in Bitcoin or not, there are some hard core buyers who keep buying.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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