Analyzing Market Sentiment

Overview

Cryptocurrency market sentiment analysis combining Fear & Greed Index, news keyword analysis, and price/volume momentum into a composite 0-100 score.

Prerequisites

• Python 3.8+ installed

• Dependencies: pip install requests

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

• Optional: crypto-news-aggregator skill for enhanced news analysis

Instructions

Assess user intent - determine what analysis is needed:

• Overall market: no specific coin, general sentiment

• Coin-specific: extract symbol (BTC, ETH, etc.)

• Quick vs detailed: quick score or full component breakdown

Run sentiment analysis with appropriate options:

Quick market sentiment check

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py

Coin-specific sentiment

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --coin BTC

Detailed breakdown with all components

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --detailed

Custom time period

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --period 7d --detailed

Export results for trading models or analysis:

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --format json --output sentiment.json

Present results to the user:

• Show composite score and classification prominently

• Explain what the sentiment reading means

• Highlight extreme readings (potential contrarian signals)

• For detailed mode, show component breakdown with weights

Output

Composite sentiment score (0-100) with classification and weighted component breakdown. Extreme readings serve as contrarian indicators:

============================================================================== MARKET SENTIMENT ANALYZER Updated: 2026-01-14 15:30 # 2026 - current year timestamp

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.

==============================================================================

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

See ${CLAUDE_SKILL_DIR}/references/errors.md for comprehensive error handling.

Examples

Sentiment analysis patterns from quick checks to custom-weighted deep analysis:

Quick market sentiment

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py

Bitcoin-specific sentiment

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --coin BTC

Detailed analysis with component breakdown

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --detailed

Custom weights emphasizing news

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --weights "news:0.5,fng:0.3,momentum:0.2"

Weekly sentiment trend

python ${CLAUDE_SKILL_DIR}/scripts/sentiment_analyzer.py --period 7d --detailed

Resources

• ${CLAUDE_SKILL_DIR}/references/implementation.md

• CLI options, classifications, JSON format, contrarian theory

• ${CLAUDE_SKILL_DIR}/references/errors.md

• Comprehensive error handling

• ${CLAUDE_SKILL_DIR}/references/examples.md

• Detailed usage examples

• Alternative.me Fear & Greed: https://alternative.me/crypto/fear-and-greed-index/

• CoinGecko API: https://www.coingecko.com/en/api

• ${CLAUDE_SKILL_DIR}/config/settings.yaml

• Configuration options