Ashikur Rahaman
Daffodil International University

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Bitcoin trading indicator: a machine learning driven real time bitcoin trading indicator for the crypto market Ashikur Rahaman; Abu Kowshir Bitto; Khalid Been Md. Badruzzaman Biplob; Md. Hasan Imam Bijoy; Nusrat Jahan; Imran Mahmud
Bulletin of Electrical Engineering and Informatics Vol 12, No 3: June 2023
Publisher : Institute of Advanced Engineering and Science

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.11591/eei.v12i3.4486

Abstract

As opposed to other fiat currencies, bitcoin has no relationship with banks. Its price fluctuation is largely influenced by fresh blocks, news, mining information, support or resistance levels, and public opinion. Therefore, a machine-learning model will be fantastic if it learns from data and tells or indicates if we need to purchase or sell for a little period. In this study, we attempted to create a tool or indicator that can gather tweets in real-time using tweepy and the Twitter application programming interface (API) and report the sentiment at the time. Using the renowned Python module "FBProphet," we developed a model in the second phase that can gather historical price data for the bitcoin to US dollar (BTCUSD) pair and project the price of bitcoin. In order to provide guidance for an intelligent forex trader, we finally merged all of the models into one form. We traded with various models for a very little number of days to validate our bitcoin trading indicator (BTI), and we discovered that the combined version of this tool is more profitable. With the combined version of the instrument, we quickly and with little error root mean square error (RMSE: 1,480.58) generated a profit of $1,000.71 USD.