analyzing-market-sentiment

# Analyzing Market Sentiment ## Overview This skill provides comprehensive cryptocurrency market sentiment analysis by combining multiple data sources: - **Fear & Greed Index**: Market-wide sentiment from Alternative.me - **News Sentiment**: Keyword-based analysis of recent crypto news - **Market Momentum**: Price and volume trends from CoinGecko **Key Capabilities:** - Composite sentiment score (0-100) with classification - Coin-specific sentiment analysis - Detailed breakdown of sentiment components - Multiple output formats (table, JSON, CSV) ## Prerequisites Before using this skill, ensure: 1. **Python 3.8+** is installed 2. **requests** library is available: `pip install requests` 3. Internet connectivity for API access (Alternative.me, CoinGecko) 4. Optional: `crypto-news-aggregator` skill for enhanced news analysis ## Instructions ### Step 1: Assess User Intent Determine what sentiment analysis the user needs: - **Overall market**: No specific coin, general sentiment - **Coin-specific**: Extract coin symbol (BTC, ETH, etc.) - **Quick vs detailed**: Quick score or full breakdown ### Step 2: Execute Sentiment Analysis Run the sentiment analyzer with appropriate options: ```bash # Quick sentiment check (default) python {baseDir}/scripts/sentiment_analyzer.py # Coin-specific sentiment python {baseDir}/scripts/sentiment_analyzer.py --coin BTC # Detailed analysis with component breakdown python {baseDir}/scripts/sentiment_analyzer.py --detailed # Export to JSON python {baseDir}/scripts/sentiment_analyzer.py --format json --output sentiment.json # Custom time period python {baseDir}/scripts/sentiment_analyzer.py --period 7d --detailed ``` ### Step 3: Present Results Format and present the sentiment analysis: - Show composite score and classification - Explain what the sentiment means - Highlight any extreme readings - For detailed mode, show component breakdown ### Command-Line Options | Option | Description | Default | |--------|-------------|---------| | `--coin` | Analyze specific coin (BTC, ETH, etc.) | All market | | `--period` | Time period (1h, 4h, 24h, 7d) | 24h | | `--detailed` | Show full component breakdown | false | | `--format` | Output format (table, json, csv) | table | | `--output` | Output file path | stdout | | `--weights` | Custom weights (e.g., "news:0.5,fng:0.3,momentum:0.2") | Default | | `--verbose` | Enable verbose output | false | ### Sentiment Classifications | Score Range | Classification | Description | |-------------|----------------|-------------| | 0-20 | Extreme Fear | Market panic, potential bottom | | 21-40 | Fear | Cautious sentiment, bearish | | 41-60 | Neutral | Balanced, no strong bias | | 61-80 | Greed | Optimistic, bullish sentiment | | 81-100 | Extreme Greed | Euphoria, potential top | ## Output ### Table Format (Default) ``` ============================================================================== MARKET SENTIMENT ANALYZER Updated: 2026-01-14 15:30 ============================================================================== COMPOSITE SENTIMENT ------------------------------------------------------------------------------ Score: 65.5 / 100 Classification: GREED Component Breakdown: - Fear & Greed Index: 72.0 (weight: 40%) → 28.8 pts - News Sentiment: 58.5 (weight: 40%) → 23.4 pts - Market Momentum: 66.5 (weight: 20%) → 13.3 pts Interpretation: Market is moderately greedy. Consider taking profits or reducing position sizes. Watch for reversal signals. ============================================================================== ``` ### JSON Format ```json { "composite_score": 65.5, "classification": "Greed", "components": { "fear_greed": { "score": 72, "classification": "Greed", "weight": 0.40, "contribution": 28.8 }, "news_sentiment": { "score": 58.5, "articles_analyzed": 25, "positive": 12, "negative": 5, "neutral": 8, "weight": 0.40, "contribution": 23.4 }, "market_momentum": { "score": 66.5, "btc_change_24h": 3.5, "weight": 0.20, "contribution": 13.3 } }, "meta": { "timestamp": "2026-01-14T15:30:00Z", "period": "24h" } } ``` ## Error Handling See `{baseDir}/references/errors.md` for comprehensive error handling. | Error | Cause | Solution | |-------|-------|----------| | Fear & Greed unavailable | API down | Uses cached value with warning | | News fetch failed | Network issue | Reduces weight of news component | | Invalid coin | Unknown symbol | Proceeds with market-wide analysis | ## Examples See `{baseDir}/references/examples.md` for detailed examples. ### Quick Examples ```bash # Quick market sentiment check python {baseDir}/scripts/sentiment_analyzer.py # Bitcoin-specific sentiment python {baseDir}/scripts/sentiment_analyzer.py --coin BTC # Detailed analysis python {baseDir}/scripts/sentiment_analyzer.py --detailed # Export for trading model python {baseDir}/scripts/sentiment_analyzer.py --format json --output sentiment.json # Custom weights (emphasize news) python {baseDir}/scripts/sentiment_analyzer.py --weights "news:0.5,fng:0.3,momentum:0.2" # Weekly sentiment comparison python {baseDir}/scripts/sentiment_analyzer.py --period 7d --detailed ``` ## Resources - **Alternative.me Fear & Greed Index**: https://alternative.me/crypto/fear-and-greed-index/ - **CoinGecko API**: https://www.coingecko.com/en/api - **Sentiment Analysis Theory**: Contrarian indicator - extreme readings often precede reversals - See `{baseDir}/config/settings.yaml` for configuration options