Predicting Close Prices Using Lstm Neural Network
Overall, below are the steps we followed to predict close prices using LSTM neural network.
- Building LSTM model using Keras
- Normalizing data using MinMaxScaler from Scikit-Learn.
- Re-framing of data for supervised learning using Pandas
- Training LSTM model on training data set
- Testing/Predicting close prices
Given that we are dealing with time series data, LSTM is well suited. Long short-term memory units are a building unit for layers of a recurrent neural network . An RNN composed of LSTM units is often called an LSTM network.
The expression long short-term refers to the fact that LSTM is a model for the short-term memory which can last for a long period of time. An LSTM is well-suited to classify, process and predict time series given time lags of unknown size and duration between important events. LSTMs were developed to deal with the exploding and vanishing gradient problem when training traditional RNNs. Relative insensitivity to gap length gives an advantage to LSTM over alternative RNNs, hidden Markov models and other sequence learning methods in numerous applications.
In our model we are building simple LSTM in Keras. Keras is high level API wrapper, deep learning framework which runs on the top of Tensorflow or Caffe2. It leverages GPU capabilities as well. So for simple models it is really good choice.
Below code snippet is to build LSTM model using Keras.
The above code normalizes the data for the Bitcoin to zero mean and standard deviation of one.
Bitcoin Halving In May 2020
The halving event happened on May 11. The new reward per block was set at 6.25 BTC, which was the new era for Bitcoin. So, the number of bitcoins circulating became even scarcer, which also coincided with people receiving their stimulus and money packages. Because of the higher demand and lower supply, the price rose.
Regulations And Legal Requirements
There’s some confusion about who should regulate the exchange of cryptocurrencies. The Securities and Exchange Commission says cryptocurrencies are securities like stocks and bonds, while the Commodity Futures Trading Commission says they’re commodities like coffee or gold.
Both can’t claim regulatory authority over cryptocurrency exchanges. A determining ruling could provide greater clarity and improve cryptocurrency values while opening the door for more widely traded crypto-related financial products.
Regulation is required to allow for easier ways to trade cryptocurrency. Products such as ETFs or futures contracts provide more access to cryptocurrency for investors, increasing its value. Additionally, regulation could enable investors to take short positions or bet against the price of cryptocurrencies with futures contracts or options. That should produce better price discovery and reduce the volatility of cryptocurrency pricing.
Regulations could also negatively impact demand for cryptocurrency. If a governing body changes the rules to disfavor cryptocurrency investment or use, it could send the price of cryptocurrencies lower.
Also Check: What Crypto Has The Most Potential
Ethereum Price Prediction For 2022 And Beyond: Where Next For Eth
Technical ETH price analysis from CoinCodex showed short-term sentiment was bullish at the time of writing at a price around $4,417, with 26 technical analysis indicators giving bullish signals and two emitting bearish signals. There was technical support at $4,079.94 down to $3,669.14, with upside resistance from $4,490.74 up to $4,901.54, the data showed.
CoinCodex predicted the ETH price could move down to $4,395.59 by 12 December.
Prominent traders and investors continue to expect the ether price to rise over the long-term with the continued adoption of the blockchain for dApps and NFTs. Billionaire investor Mark Cuban tweeted in October that he sees more potential for the growth in use of Ethereum than Bitcoin.
I like Eth/L2s more, and there is no point arguing the Trilemma, halving or inflation. I like it more because I can see an unlimited number of applications that will change the biz/consumer world forever. And to use them you need to buy Eth/L2. BTC doesn’t have that demand pull
Some market observers expect ETH to continue to gain value against BTC, with the ETH/BTC rate rising to its highest level since 2018.
An analyst known as Galaxy tweeted on 3 December that they expect ETH to start going into parabolic mode, adding on 7 December that they expect the price to reach $5,000 by the end of the week.
In early November, Goldman Sachs issued an ether price target of $8,000 by the end of 2021, if it tracks inflation expectations.
Will Bitcoin Crash Again
If more countries create regulations/laws for cryptocurrency, more bad news will be published. This means we may see Bitcoin crashing again. Countries such as South Korea, Japan, China, France, and the United States all want to create new regulations.
Even though they want to create new regulations, we must remember that:
This could take a long time.
It might not affect the price of Bitcoin.
Until then, the most popular Bitcoin projection is that it will continue to rise.
Also Check: Where Can You Pay With Cryptocurrency
Bitmex And Paypal October 2020
The most shocking news of October came from the derivatives platform BitMEX. The exchange has been sued by the US Commodity Futures Trading Commission . According to the CFTC, BitMEX was operating without proper licenses. It was also accused of manipulating the market, which doesnt look good for the price of Bitcoin.
On the plus side, PayPal opened its doors to Bitcoin the same month. Anytime a billion-dollar company starts accepting cryptocurrency, it pushes the market forward and causes a price increase. Its also important to note that PayPal bought up about 70% of the newly mined Bitcoins.
Cryptocurrency Predictions: Will Btc Hit Six Figures
When it comes to cryptocurrency predictions for 2021, it seems few on Wall Street are confident that bitcoin can pass its all-time high of $64,683.10, recorded in mid-April. CNBC polls chief investment officers, portfolio managers and equity strategists every quarter. Its latest survey, released at the start of July, found that just 6% believe BTC will be above $60,000 by the end of the year.
Meanwhile, almost half 44% anticipate that the world’s biggest cryptocurrency will be worth less than $30,000.
There are some important caveats to this gloomy crypto forecast. CNBC’s research was performed before BTC broke out of the $30,000 $35,000 zone, where it had been stuck for weeks on end. The cryptocurrency’s surge to $46,000 on 10 August, the highest level seen in three months, may have helped change attitudes.
Indeed, some cryptocurrency price predictions are now boldly proclaiming that we are at the start of another bull run. Among those adopting a bullish view is PlanB, the pseudonymous creator of the controversial stock-to-flow model. This metric assumes that as the number of new bitcoins entering circulation continues to dwindle, BTC’s value will surge.
Back in June, PlanB set out its worst-case scenarios for the rest of this year. its cryptocurrency predictions suggest that BTC will not close below $47,000 in August, $43,000 in September, $63,000 in October, $98,000 in November and $135,000 in December.
Recommended Reading: Which Cryptocurrency Will Explode In 2021
The Stock Market Discounts All News
The stock market incorporates new information as soon as it becomes available. Once this news is released, the price of the asset changes to reflect this new information. The price reflects the sum of all the hopes, fears, and expectations of all the market participants. Factors such as interest rate movements, earning expectations, revenue projections, major elections, product initiatives, etc. are all integrated into the market price.
Okay So How Do I Act On What The Charts Tell Me
Certain shapes in candlestick charts can unlock opportunities for traders.
For example, a hammer candlestick usually features a long line at the bottom, which indicates that prices have fallen steeply before recovering to close higher. Usually, this can be interpreted to mean crypto assets were being sold extensively during the trading session, but buyers applied enough pressure to help prices rise again.
This pattern can also be inverted, meaning that the long line shoots out from the top of the body. Oftentimes, this can indicate that prices have been in decline but could be about to turn around and rise again.
Shooting star candlesticks look quite similar to inverted hammers but occur in a different context. These are typically seen after price advances and signal that an asset could be about to embark on a downward trend.
Hanging man candlesticks are also useful for assessing when markets might be about to start weakening. These candlesticks arise after a period when prices have been trending upward, with that long lower shadow we were talking about before indicating that selling pressure means the increases of recent sessions may come to an end.
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Should I Invest In Cryptocurrency
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority warned in January: Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors money.
If consumers invest in these types of product, they should be prepared to lose all their money.
Should I Rely On Technical Analysis Alone
Although it& rsquo s arguably the most common form of analysis in the crypto world, it& rsquo s important to take other factors into account.
Always remember that technical analysis won& rsquo t tell you the fundamental factors that are affecting the market and causing prices to head up or down. Hacking attacks, regulatory rulings, significant news stories, landmark agreements and new product launches can all help you to stay ahead & mdash and give an idea of where the candlestick will fall before it does so. Relying on just one form of analysis is kind of like trying to eat steak with just a fork. You need a knife too.
Read Also: How To Create My Own Crypto Token
Whats Next For Crypto Here Are 10 Predictions
What changes are on the way for bitcoin and crypto at large? Here are 10 things to watch for in the coming year that portfolio managers should consider when advancing their cryptocurrency strategies.
As an emergent and inherently volatile asset class, cryptocurrencies such as bitcoin, Ethereum and others might seem to defy predictive modeling and forecasting. But blockchain analysis of millions of global crypto transactions and asset-holding behaviors are revealing trends, potential indicators and other intel that investors can use to anticipate whats coming next. Here are 10 predictions from Philip Gradwell, Chief Economist at Chainalysis, the blockchain data platform and industry leader. While the following is not investment advice, he recommends that institutional investors consider these 10 factors when advancing their cryptocurrency strategies through 2022.
1. Look for bitcoin to hold its $36,000 price floor. Theres data-driven evidence that people are willing to buy and hold bitcoin at that $36,000 level, and were expecting it to maintain this price floor through the summer of 2022, says Gradwell.
5. Liquidity will surge. As more institutional investors buy and sell large amounts of cryptocurrency in shorter intervals unlike retail investors who tend to buy and hold for long periods this will drive up liquidity, says Gradwell. Its a key sign of a more mature market.
Cryptocurrencies That Will Rise In 2022
The first BitTorrent BTT Token is the original BTT token from BitTorrent which rose to around 201 in just the past week. 2020 will be a good year for the cryptocurrency market. Of course, the crypto market will again see the entry of new digital coins with the aim of making it to the top.
With the steady growth projected by crypto now, Feg Coin will become one of the top 15 Alternative cryptocurrency altcoins in the world by the end of 2021 with a value above US 000007 USD 1 IDR from todays price of US 00000000118 or 00001711 IDR. Billionaire venture capitalist and bitcoin investor Tim Draper predicts the value of bitcoin will soar to US 250000, equivalent to Rp. 35 billion at an exchange rate of Rp. 14,200 at the end of 2022 and early 2023. For long-term investors, these 7 Cryptocurrency Coins are predicted to rise in 2022 and next year. -years ahead and is very suitable for long-term investors who want to invest.
Some believe Doge will increase to 1 some do not. Bitcoin Price Prediction for 2022 Venture capital investor Drapers team has reaffirmed its BTC price prediction. The association said the new plan includes a deal with Silvergate Capital Corp, a leading player in the crypto industry that will issue coins and manage Diems reserves in US dollars.
November 11 2018 by Nabila. 15 Collectible Cryptocurrencies for Investment 2021. Ethereum was the first cryptocurrency project to introduce Smart Contracts.
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Capture Gains Bigger Than Bitcoin
Institutional money has been a primary force in driving the stock market to new highs. And now some of that money has started moving into crypto.
Imagine if every single investment firm on the planet began to diversify to include Bitcoin and other digital assets. If they put 2%, 3%, or 5% of their capital into coins… it would do nothing less than trigger the biggest crypto inflow ever, period.
We’ve found a way to make the most of this rare opportunity.
Nearly every time Bitcoin goes up, certain members of this small class of little-known cryptos jump even higher 142% in 12 days… 330% in 82 days… 273% in 14 days.
Follow me on Twitter and Money Morning on and .
Ethereum Is The World’s Second
The world’s second-largest cryptocurrency Etheruem made a new all-time high record on November 4, 2021. The price of one ETH touched $4,664.38 around 12:30 AM earlier this morning. In India, Ethereum price went as high as Rs. 3,69,712.48 earlier this morning and the current price is around Rs. 3,64,244.59. Ethereum touched the new all-time high after dropping to Rs. 3,56,044.92 on November 3, 2021. Keep reading to know more about Ether price prediction.
While the price of the digital coin has been rising over the past few days, the trading volume has dropped by 2.38% over the last 24-hours. As of now, digital currency has a fully diluted market cap of $538 billion. Its value has surged by 0.13% in the last 24-hours and over 14% in the past week. With over 118 million coins in supply, the volume to market cap ratio is 0.0381. It can be inferred from the data that investors around the world are showing trust in cryptocurrency.
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The Only Certainty In Crypto
For all the unknowns that still swirl around cryptocurrency, the industrys leaps in maturity and market share since mid-2020 almost guarantee that large investors will no longer tolerate or dismiss it as a mysterious alternative asset class that isnt subject to rules or norms. Going forward, theyll regard it as an essential asset class that they must approach with the same caliber of data-driven scrutiny that they give any other investment category in their portfolio.
The speed, depth and accuracy of the blockchain analysis that institutional investors rely on will be a determining factor in whether they capitalize on opportunities in the next yearor become an unwilling part of another cautionary tale. And it may not be a tale about the perils of managing risk poorly it may be a lament of missing the early signal of a trend or development that other institutional investors moved on to reap significant gains while still protecting their capital.
Chainalysis can be a data partner and educational partner to institutional investors as they make decisions about cryptocurrency, says Gradwell. And thats not just in buying an asset, but also investing in companies or product development. All these decisions need to be driven by data, and we offer institutional investors the most comprehensive and in-depth view of cryptocurrency information in the industry.
What Are The Most Popular Techniques Used For Technical Analysis
Most analysts are trying to uncover trends that reveal where the market is going.
One popular method is known as trend lines. This tries to disregard anomalies and extreme outliers in a cryptocurrency& rsquo s price to detect an upward trend when assets carry on hitting new highs in their price & mdash or lows, if prices are falling over consecutive days. This, combined with analyzing the shape of candlestick charts, can help reveal whether a trend is likely to continue or come crashing to an end, enabling traders to make considered decisions on what their short-term strategy should be.
A similar strategy involves something called a moving average. This involves tracking the typical prices of a crypto asset over a set period of time & mdash and whether it& rsquo s a week, 10 days, 30 days or more is up to you. Comparing moving averages over a shorter time frame with a longer one can uncover new trends and enable you to pick up on significant levels of recent growth and decline that a more long-term statistical breakdown wouldn& rsquo t reflect too clearly.
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What New Regulation Could Mean For Investors
Recent proposed legislation could make it easier for the IRS to find cases of tax evasion when it comes to crypto, though investors should already keep records of any capital gains or losses on their crypto assets. But the new rules may also make it easier for investors to properly report crypto transactions.
This is because if the bill passes, exchanges will have to issue 1099-B tax forms with cost basis information to investors, Shehan Chandrasekera, CPA, head of tax strategy at CoinTracker.io, a crypto tax software company, recently told NextAdvisor. This will significantly reduce the crypto tax filing burden.
Regulatory announcements can also affect the price of cryptocurrency in already volatile markets. Market volatility is why investing experts recommend keeping any cryptocurrency investments to less than 5% of your total portfolio and never invest anything youre not OK with losing.
Ultimately, many experts believe regulation is a good thing for the industry. Sensible regulation is a win for everyone, says Ben Weiss, CEO and cofounder of CoinFlip, a cryptocurrency buying platform and crypto ATM network. It gives people more confidence in crypto, but I think its something we have to take our time on and we have to get it right.