The use of social analysis method (market sentiments) for cryptocurrency market forecasting.

Authors

DOI:

https://doi.org/10.31498/2225-6725.1(39).2024.310205

Keywords:

cryptocurrency;, Bitcoin;, social analysis;, market sentiment analysis;, forecasting;, financial markets.

Abstract

This article analyzes the main existing concepts of the social analysis method, explores the main tools and indicators of market sentiment analysis used for cryptocurrency market forecasting. The effectiveness of using social analysis tools (using Google Trends, as an example) for forecasting the Bitcoin price for the period from 2016 to 2024 has been evaluated. The article provides an analysis of the effectiveness of using social analysis indicators (using the Fear and Greed Index, as an example) for forecasting the Bitcoin price for the period from 2018 to 2024. The methodological basis of the study includes analysis, observation, comparison research methods and graphical representation. Based on the results of the conducted research the expediency of using the Google Trends tool for short-term forecasting of the Bitcoin price has been confirmed, by comparing the search volume graph in Google for the term "Bitcoin" and the price graph of the main cryptocurrency (BTC) against the USD. The feasibility of using the Fear and Greed Index for short-term forecasting of cryptocurrency exchange rates has been evaluated (using Bitcoin rate forecasting as an example) in "bullish" and "bearish" markets, by comparing the value of the Fear and Greed Index at trend change points on the Bitcoin price graph, and the most optimal phase of cryptocurrency markets for the application of this indicator in forecasting has been determined.

References

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Published

2024-05-30

How to Cite

Kamyshnykova, E., & Romash, K. (2024). The use of social analysis method (market sentiments) for cryptocurrency market forecasting . REPORTER OF THE PRIAZOVSKYI STATE TECHNICAL UNIVERSITY Section: Economic Sciences, (1(39), 19–30. https://doi.org/10.31498/2225-6725.1(39).2024.310205

Issue

No. 1(39) (2024): REPORTER OF THE PRIAZOVSKYI STATE TECHNICAL UNIVERSITY Section: Economic sciences

Section

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