How does Sentimental Analysis help in Predicting Crypto Price Trends?
Analyzing and predicting the price trends of the crypto market is very essential for traders and investors. It increases the chance of gaining profits in the cryptocurrency world and also reduces the risk of losses. Among the 3 types analyses i.e., Technical, Fundamental and Sentimental, we will learn about Sentimental Analysis in this blog.
What is Sentimental Analysis?
Most of the marketing and investment decisions in the virtual world are made after watching the reviews and opinions of a product, service or company. Analyzing the market through these sentiment data is known as Sentimental Analysis.
In simple words, when traders observe the opinions, reviews, and evaluations of important people in the crypto market like influencers and other prominent traders, it is called Sentimental Analysis.
How to do Sentimental Analysis?
The different techniques of analyzing the Sentiment Data are as follows:
- Document-level of Sentiment Analysis-
Thoughts and opinions of people describe people’s viewpoints or feelings towards an entity or an event. People are nowadays forthcoming in sharing their opinions on many blogs and websites in the form of reviews.
In this analysis, each document on a single subject by an individual is classified into positive or negative.
- Sentence-level of Sentiment Analysis-
Sentence-level of Sentiment Analysis provides a more explained view of different opinions written in a document. Those reviews which contain no opinion are filtered out. Then, it is decided whether these opinions are positive or negative.
- Aspect based Sentiment Analysis-
Many times people review objects that have many features or characteristics. People also have different thoughts and opinions about these different characteristics.
Aspect based sentiment analysis focuses on the identification of all sentiment expressions given in a document.
