I coded a script to help me understand the daily news sentiment for Bitcoin in order to help me forecast potential pumps or dumps and open sourced it

The script searches the web for cryptocurrency news, taking keywords as input and then passes those to a text sentiment API, analysing how many of the headlines are positive, neutral or negative.

The idea is that the script will check multiple sources and then calculate a % for each of the 3 sentiment categories. That way I’ll be able to detect how the media is portraying Bitcoin, or any other crypto that day.

I’m planning to integrate the output of this script into a crypto trading bot in order automatically buy or sell a coin the news are overwhelmingly positive or negative.

Just like with the Elon Musk bot that I shared a while ago, my thinking is that catching a wave before it breaks, you can ride it for a while.

The only limitation as it stands right now is that you can only sent 100 requests/day through the websearch API, so I might end up replacing it with a different solution.

Would you use this script’s signals in your investments? Why/Why not?

Resources available below if you’re interested:

GitHub Repo: https://github.com/CyberPunkMetalHead/cryptocurrency-news-analysis

Article and Guide: https://www.cryptomaton.org/2021/04/05/how-to-analyse-daily-news-sentiment-for-cryptocurrency-with-python/

submitted by /u/CyberPunkMetalHead
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