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:

• Python 3.8+ is installed

• requests library is available: pip install requests

• Internet connectivity for API access (Alternative.me, CoinGecko)

• 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:

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

{ "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

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