ELINVO (Electronics, Informatics, and Vocational Education)
Vol. 9 No. 1 (2024): Mei 2024

Optimizing Bitcoin Price Prediction with LSTM: A Comprehensive Study on Feature Engineering and the April 2024 Halving Impact

Purnama, Panji Satria Taqwa Putra (Unknown)



Article Info

Publish Date
22 Oct 2024

Abstract

This research aims to develop a Bitcoin price prediction model using machine learning techniques, with a specific focus on Long Short-Term Memory (LSTM) neural networks. The Bitcoin market is characterized by unique features such as high volatility and the influence of various external factors, which differ significantly from traditional financial markets. As such, precise feature engineering is crucial for accurately modelling Bitcoin prices. Utilizing historical Bitcoin price data from 2014 to 2023, this study extensively evaluates LSTM models. The results indicate that LSTM models provide highly accurate predictions, with a Mean Squared Error (MSE) of 0.0001798 and a Mean Absolute Error (MAE) of 0.0101322. These results demonstrate that LSTM effectively captures the complex and dynamic patterns of Bitcoin prices, outperforming other methods. The findings have significant implications for financial market analysis, especially within the rapidly evolving domain of crypto assets. By leveraging machine learning methodologies, this research enhances understanding of the complexities of the crypto market and offers potential strategies for smarter investment decisions. The success of the LSTM model in improving Bitcoin price prediction accuracy underscores its importance in navigating the volatile and dynamic nature of the crypto market. Overall, this study highlights the substantial potential of machine learning approaches, particularly LSTM models, in analyzing and predicting crypto market behavior. It contributes to the growing academic discourse on the application of advanced technologies in finance and can stimulate further discussions on how machine learning can address challenges and opportunities in the crypto market.

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Journal Info

Abbrev

elinvo

Publisher

Subject

Computer Science & IT Education Electrical & Electronics Engineering

Description

ELINVO (Electronics, Informatics and Vocational Education) is a peer-reviewed journal that publishes high-quality scientific articles in Indonesian language or English in the form of research results (the main priority) and or review studies in the field of electronics and informatics both in terms ...