trading_bot_v3/app/api/global-sentiment/route.js

/**
 * 🌍 Global Market Sentiment Dashboard API
 * Provides comprehensive sentiment data for frontend display
 */

import { NextRequest, NextResponse } from 'next/server';
import https from 'https';

// Utility function for external API calls
function makeRequest(url, options = {}) {
  return new Promise((resolve, reject) => {
    const req = https.request(url, options, (res) => {
      let data = '';
      res.on('data', chunk => data += chunk);
      res.on('end', () => {
        try {
          resolve(res.statusCode === 200 ? JSON.parse(data) : null);
        } catch (e) {
          resolve(null);
        }
      });
    });
    req.on('error', reject);
    req.end();
  });
}

async function getFearGreedIndex() {
  try {
    const response = await makeRequest('https://api.alternative.me/fng/');
    if (response?.data?.[0]) {
      const data = response.data[0];
      return {
        value: parseInt(data.value),
        classification: data.value_classification,
        timestamp: data.timestamp,
        source: 'alternative.me'
      };
    }
  } catch (error) {
    console.log('Fear & Greed API unavailable, using estimation');
  }
  
  // Fallback estimation
  const now = Date.now();
  const baseValue = 50 + Math.sin(now / (1000 * 60 * 60 * 24)) * 25;
  return {
    value: Math.round(Math.max(0, Math.min(100, baseValue))),
    classification: 'estimated',
    timestamp: Math.floor(now / 1000),
    source: 'estimated'
  };
}

async function getAssetPrice(coinId) {
  try {
    const url = `https://api.coingecko.com/api/v3/simple/price?ids=${coinId}&vs_currencies=usd&include_24hr_change=true`;
    const response = await makeRequest(url);
    return response?.[coinId];
  } catch (error) {
    console.log(`Price fetch failed for ${coinId}`);
    return null;
  }
}

async function getBitcoinDominance() {
  try {
    const url = 'https://api.coingecko.com/api/v3/global';
    const response = await makeRequest(url);
    return response?.data?.market_cap_percentage?.btc || 50;
  } catch (error) {
    return 50; // Default assumption
  }
}

function calculateVolatilityIndex(prices) {
  if (!prices || prices.length < 2) return 50;
  
  // Calculate simple volatility based on price changes
  const changes = [];
  for (let i = 1; i < prices.length; i++) {
    changes.push(Math.abs((prices[i] - prices[i-1]) / prices[i-1]));
  }
  
  const avgChange = changes.reduce((a, b) => a + b, 0) / changes.length;
  return Math.min(100, avgChange * 1000); // Scale to 0-100
}

function getMarketRegime(fearGreed, btcDom, volatility) {
  if (fearGreed <= 25) return 'EXTREME_FEAR';
  if (fearGreed <= 45) return 'FEAR';
  if (fearGreed >= 75) return 'EXTREME_GREED';
  if (fearGreed >= 55) return 'GREED';
  return 'NEUTRAL';
}

function getRiskLevel(regime, volatility) {
  switch (regime) {
    case 'EXTREME_FEAR': return volatility > 60 ? 'HIGH_OPPORTUNITY' : 'MODERATE_OPPORTUNITY';
    case 'FEAR': return 'MODERATE_OPPORTUNITY';
    case 'EXTREME_GREED': return volatility > 60 ? 'EXTREME_RISK' : 'HIGH_RISK';
    case 'GREED': return 'MODERATE_RISK';
    default: return volatility > 60 ? 'ELEVATED' : 'BALANCED';
  }
}

function getTradingThresholds(regime) {
  const thresholds = {
    EXTREME_FEAR: { buy: 55, sell: 75, maxPosition: 1.5 },
    FEAR: { buy: 60, sell: 70, maxPosition: 1.2 },
    NEUTRAL: { buy: 65, sell: 65, maxPosition: 1.0 },
    GREED: { buy: 70, sell: 60, maxPosition: 0.8 },
    EXTREME_GREED: { buy: 80, sell: 55, maxPosition: 0.5 }
  };
  
  return thresholds[regime] || thresholds.NEUTRAL;
}

export async function GET() {
  try {
    console.log('🌍 Fetching global market sentiment data...');
    
    // Fetch all sentiment data in parallel
    const [fearGreed, btcPrice, ethPrice, solPrice, btcDominance] = await Promise.all([
      getFearGreedIndex(),
      getAssetPrice('bitcoin'),
      getAssetPrice('ethereum'),
      getAssetPrice('solana'),
      getBitcoinDominance()
    ]);
    
    // Calculate derived metrics
    const priceChanges = [
      btcPrice?.usd_24h_change || 0,
      ethPrice?.usd_24h_change || 0,
      solPrice?.usd_24h_change || 0
    ];
    
    const volatilityIndex = calculateVolatilityIndex(priceChanges);
    const marketRegime = getMarketRegime(fearGreed.value, btcDominance, volatilityIndex);
    const riskLevel = getRiskLevel(marketRegime, volatilityIndex);
    const thresholds = getTradingThresholds(marketRegime);
    
    // Calculate correlations (simplified)
    const avgChange = priceChanges.reduce((a, b) => a + b, 0) / priceChanges.length;
    const correlationLevel = Math.abs(avgChange) > 5 ? 'HIGH' : 'NORMAL';
    
    const sentimentData = {
      timestamp: new Date().toISOString(),
      
      // Core sentiment indicators
      fearAndGreed: {
        value: fearGreed.value,
        classification: fearGreed.classification,
        interpretation: getInterpretation(fearGreed.value),
        source: fearGreed.source
      },
      
      // Crypto-specific metrics
      bitcoinDominance: {
        value: btcDominance,
        interpretation: btcDominance > 60 ? 'BTC_STRENGTH' : btcDominance < 40 ? 'ALT_STRENGTH' : 'BALANCED'
      },
      
      // Volatility measures
      volatility: {
        index: volatilityIndex,
        level: volatilityIndex > 60 ? 'HIGH' : volatilityIndex < 30 ? 'LOW' : 'MODERATE'
      },
      
      // Market classification
      marketRegime: {
        current: marketRegime,
        riskLevel: riskLevel,
        correlationLevel: correlationLevel
      },
      
      // Trading parameters
      tradingThresholds: thresholds,
      
      // Asset prices
      assetPrices: {
        bitcoin: btcPrice,
        ethereum: ethPrice,
        solana: solPrice
      },
      
      // Market summary
      summary: {
        sentiment: `${marketRegime.replace('_', ' ')} market with ${riskLevel.replace('_', ' ')} risk level`,
        recommendation: getMarketRecommendation(marketRegime, volatilityIndex),
        keyFactors: getKeyFactors(fearGreed.value, btcDominance, volatilityIndex)
      }
    };
    
    console.log(`📊 Sentiment: ${marketRegime} | F&G: ${fearGreed.value} | BTC Dom: ${btcDominance.toFixed(1)}%`);
    
    return NextResponse.json({
      success: true,
      data: sentimentData
    });
    
  } catch (error) {
    console.error('❌ Global sentiment fetch error:', error);
    
    return NextResponse.json({
      success: false,
      error: error.message,
      data: getDefaultSentimentData()
    });
  }
}

function getInterpretation(fearGreedValue) {
  if (fearGreedValue <= 25) return 'Strong contrarian buy signal - market oversold';
  if (fearGreedValue <= 45) return 'Cautious buy opportunity - fear dominates';
  if (fearGreedValue >= 75) return 'Strong sell signal - market euphoric';
  if (fearGreedValue >= 55) return 'Consider profit taking - greed increasing';
  return 'Neutral sentiment - technical analysis primary';
}

function getMarketRecommendation(regime, volatility) {
  switch (regime) {
    case 'EXTREME_FEAR':
      return volatility > 60 ? 'AGGRESSIVE_BUY' : 'MODERATE_BUY';
    case 'FEAR':
      return 'CAUTIOUS_BUY';
    case 'EXTREME_GREED':
      return volatility > 60 ? 'AGGRESSIVE_SELL' : 'MODERATE_SELL';
    case 'GREED':
      return 'CAUTIOUS_SELL';
    default:
      return 'TECHNICAL_ANALYSIS';
  }
}

function getKeyFactors(fearGreed, btcDom, volatility) {
  const factors = [];
  
  if (fearGreed <= 25) factors.push('Extreme fear presents opportunity');
  if (fearGreed >= 75) factors.push('Extreme greed suggests caution');
  if (btcDom > 60) factors.push('Bitcoin dominance affecting altcoins');
  if (btcDom < 40) factors.push('Altcoin season conditions');
  if (volatility > 60) factors.push('High volatility increases risk/reward');
  if (volatility < 30) factors.push('Low volatility suggests consolidation');
  
  return factors;
}

function getDefaultSentimentData() {
  return {
    timestamp: new Date().toISOString(),
    fearAndGreed: { value: 50, classification: 'neutral', interpretation: 'Default neutral sentiment', source: 'default' },
    bitcoinDominance: { value: 50, interpretation: 'BALANCED' },
    volatility: { index: 50, level: 'MODERATE' },
    marketRegime: { current: 'NEUTRAL', riskLevel: 'BALANCED', correlationLevel: 'NORMAL' },
    tradingThresholds: { buy: 65, sell: 65, maxPosition: 1.0 },
    summary: {
      sentiment: 'Neutral market with balanced risk level',
      recommendation: 'TECHNICAL_ANALYSIS',
      keyFactors: ['Default sentiment data - external APIs unavailable']
    }
  };
}