The Telegram Sentiment indicator uses IntoTheBlock’s proprietary classification machine learning algorithm to infer the connotation of the messages in top Telegram groups for a particular crypto-asset. These are plotted over time to track market sentiment and the level of activity in Telegram groups of the crypto-asset.
Telegram Sentiment for Bitcoin
The Telegram Sentiment indicator is helpful to gauge traders’ emotions. In Bitcoin’s case, positive Telegram sentiment has preceded price action in several instances as seen in December 2019, April and June 2020. At the same time, the percentage of messages that are perceived as negative during market crashes tends to increase.
Finally, the total number of messages is indicative of the level of activity in these group chats. It does not necessarily reflect on the crypto-asset, but it is worth noting variations in it as an approximation to its community’s participation.