Computer Science and Information Technologies
Vol 5, No 1: March 2024

Implementing lee's model to apply fuzzy time series in forecasting bitcoin price

Farida, Yuniar (Unknown)
Ainiyah, Lailatul (Unknown)



Article Info

Publish Date
01 Mar 2024

Abstract

Over time, cryptocurrencies like Bitcoin have attracted investor's and speculators' interest. Bitcoin's dramatic rise in value in recent years has caught the attention of many who see it as a promising investment asset. After all, Bitcoin investment is inseparable from Bitcoin price volatility that investors must mitigate. This research aims to use Lee's Fuzzy Time Series approach to forecast the price of Bitcoin. A time series analysis method called Lee's Fuzzy Time Series to get around ambiguity and uncertainty in time series data. Ching-Cheng Lee first introduced this approach in his research on time series prediction. This method is a development of several previous fuzzy time series (FTS) models, namely Song and Chissom and Cheng and Chen. According to most previous studies, Lee's model was stated to be able to convey more precise forecasting results than the classic model from the FTS. This study used first and second orders, where researchers obtained error values from the first order of 5.419% and the second order of 4.042%, which means that the forecasting results are excellent. But of both orders, only the first order can be used to predict the next period's Bitcoin price. In the second order, the resulting relations in the next period do not have groups in their fuzzy logical relationship group (FLRG), so they can not predict the price in the next period. This study contributes to considering investors and the general public as a factor in keeping, selling, or purchasing cryptocurrencies.

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Journal Info

Abbrev

csit

Publisher

Subject

Computer Science & IT Engineering

Description

Computer Science and Information Technologies ISSN 2722-323X, e-ISSN 2722-3221 is an open access, peer-reviewed international journal that publish original research article, review papers, short communications that will have an immediate impact on the ongoing research in all areas of Computer ...