This Bitcoin price prediction tool collects the current bitcoin price of each popular cryptocurrency, from various online sources and uses it to manually estimate the current market sentiment. While this is worth doing, doing it is a complex task that takes time and few people are willing to do it.
However, the insights gained from these efforts can give market players an edge over the competition. In line with its ambition to empower traders to make the most informed decisions, NewsCrypto is adding a new sentiment price prediction tool to its product lineup.
Bitcoin price prediction tool
The tool scans Twitter posts and other cryptocurrency-related websites to capture market-moving themes. Then extract the relevant keywords from the noisy input data generated by crypto influencers and learn how this post affected the market in the past. Then apply this model to predict the future price of each of the top 20 cryptocurrencies – including Bitcoin (BTC), Ethereum (ETH), XRP, and more.
NewsCrypto uses a complex set of parameters to properly calculate market sentiment across multiple verticals, taking into account who is tweeting, number of followers and various other metrics related to its performance. Then cross-reference this information with market activity at the time to categorize the relative contribution of each tweet to cryptocurrency price action.
Using this information, the tool is able to turn raw data into quality insights, and give users an overall score for market tone: "Enthusiastic", "Very good", "Good", "Neutral", "Poor", "Very Bad", "Scary" - then predicts market movement based on previous activity when the same score is detected.
This not only allows NewsCrypto to reliably predict whether the market is bullish or bearish, but also predicts future price movement, whether it be a potential rally or reversal – making it an invaluable tool in any arsenal.
The first version of the tool was able to extract insights from textual sources. But NewsCrypto has plans to launch an upgraded version in the near future, which will be able to analyze video and audio sources; uses the content and tone of what is said to further improve the accuracy of the model.