Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
Bitcoin [BTC] temporarily exceeded $31,000 on June 30, the end of the second quarter of the year. BTC Trading can be both lucrative and challenging. One approach is to develop successful trading techniques that can help traders navigate complex and ever-changing market conditions. This is especially true for the world’s largest cryptocurrency, an asset that has seen significant volatility in recent years.
For a long time, the price of the cryptocurrency fluctuated between $200 and $1,000 on the price charts. However, in late 2017, the value of BTC exploded, hitting an all-time high (ATH) of nearly $20,000 in December.
Read Bitcoins [BTC] Price prediction 2023-24
As market participation increased, the price rally was also short-lived. By early 2018, the price of BTC had fallen back down to around $3,000. The cryptocurrency market as a whole went through a period of decline, with many traders losing significant amounts of money.
Nonetheless, Bitcoin rallied remarkably, surpassing its previous peak in late 2020 and peaking above $68,000 in November 2021. However, the 2022 trading year ushered in a new bearish era, exacerbated by the collapse of Terra/LUNA and FTX. In fact, Bitcoin was trading at a two-year low of $15,000 in November 2022.
While the crypto market may be unpredictable and volatile, traders and investors can still make informed decisions by staying abreast of market news, following expert analysis, and utilizing smart trading strategies such as those offered by ChatGPT.
ChatGPT: A Messiah Who Can Help You Trade Better?
In November 2022, the AI model ChatGPT was presented to the public. In fact, it quickly gained a lot of attention. Given its wide range of services and versatility, the question arises as to whether ChatGPT can leverage its expertise in other ways, such as helping BTC traders formulate and apply improved trading strategies.
When asked if this was possible, ChatGPT replied:
Source: ChatGPT
Due to its nature as an AI tool, there are limitations to what ChatGPT can do in terms of price predictions and future price movements. However, there are ways to use the tool’s capabilities to formulate better trading strategies as a BTC trader.
One way to use the AI tool to develop better trading strategies is to use it for fundamental analysis. ChatGPT is able to extract insights from financial news articles, social media posts and other unstructured data sources. We may use this information in conjunction with other datasets to develop informed trading strategies.
Another way to use ChatGPT as a bitcoin trader is to use it for sentiment analysis. ChatGPT can be fine-tuned to perform sentiment analysis on information from news articles, on-chain data providers, social media discussions, and other sources. This can be used to determine if the BTC market is stuck under positive sentiment or plagued by negative sentiment.
Additionally, BTC traders can use ChatGPT for technical analysis. Traders can ask ChatGPT to program any technical indicator or trading bot for any trading platform.
For example, I asked ChatGPT to give me an example trading bot that I can use to track BTC price volatility in Pine Script – TradingView’s programming language useful for backtesting trading strategies. The AI replied:
Source: ChatGPT
In order to use ChatGPT for technical analysis, traders need to be familiar with the language in order to know when to make the necessary changes for the code to work properly. The text of the prompt is critical to how ChatGPT understands the issue in order to provide the expected solution.
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For a well-rounded account, I spoke to Brian Quinlivan, Marketing Director at Santiment, who also happens to have been involved in bitcoin trading for a number of years.
Brian Quinlivan holds an MBA in Finance from Chapman University and has over 10 years of marketing, finance and data analysis experience. He enjoys creating financial models to improve modern investment strategies and examine the intricacies of market fluctuations.
Q: In what ways do you think ChatGPT can revolutionize cryptocurrency trading?
Yes, I think there will be a lot of use for it, especially for trading strategies. One thing to worry about is the consensus that can result from an AI technology dictating some sort of overarching strategy, whether it’s hodling or a baseline strategy.
Individuals can easily manipulate ChatGPT to (mis)inform the audience. We are already seeing some effects from this.
I think it can be helpful and dangerous at the same time, leading to many people being enlightened much more quickly, but also being steered in directions that may affect the development of cryptocurrencies and spawn many self-fulfilling prophecies.
Q: How do you think a BTC trader/investor can use the AI tool to make better investment decisions?
I think, in short, I think scripting would be used a lot more in AI because all the data could be processed at the same time and a very simple answer could be given as to whether to buy or sell. I believe that this can have a huge impact on the markets in the future.
Will BTC Surpass $35,000 Price Level?
As mentioned above, ChatGPT cannot make any predictions about the future.
However, I did ask them to give me their thoughts on how quickly BTC would reach the $35,000 price mark given what appeared to be bearish macro factors.
Source: ChatGPT
So that it answers my question, I decided to jailbreak it with the Do everything now (DAN) Method. After that it said:
Source: ChatGPT
I continued to poll AI technology on bitcoin prices between 2023 and 2024.
Source: ChatGPT
BTC has finally surpassed the much-discussed $30,000 price mark. At press time, the transaction price was $30,803. On June 30, it even briefly exceeded the $31,000 mark.
This is a notable achievement for the leading cryptocurrency as it braves a bearish market despite the US Securities and Exchange Commission (SEC) crackdown on Binance and Coinbase. Investors are now hoping that the token will sustain the price action and surpass the $35,000 price mark.
Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) were well above the neutral 50 mark. The token’s On Balance Volume (OBV) also showed an upward movement.
Source: BTC/USD, TradingView
Currently, BTC indicators are suggesting that the future of BTC is bright for now, and its price could see even more gains.
Source: Santiment
A positive MVRV ratio above two for any digital asset means that holders can, on average, earn a profit of twice their initial investment by selling their coins at the price at the time of publication.
ChatGPT might be right
ChatGPT predicts that BTC will reach amazing heights. The coin is expected to hit new all-time highs in the 2023-2024 period due to its increasing adoption (by corporations and institutions) and the increasing appeal of BTC as a hedge against inflation. The AI bot’s prediction aligns with BTC’s market indicators, predicting bullish price action.
However, it is banal to note that increased regulation and government scrutiny could result in FUD spreading and the price falling.
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