Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects solely the opinion of the author.
On September 28th, BlackRock’s Bitcoin approval was delayed [BTC] ETF application surfaced. U.S. Securities and Exchanges Commission (SEC) Chairman Gary Gensler said the approval was still under active review.
Read Bitcoins [BTC] Price prediction 2023-24
Additionally, the move has also delayed the crypto plans of Invesco, Valkyrie and Bitwise.
BTC has been fluctuating along the $27,000 price mark for the past few days. At press time, the transaction price was $26,935.
Recent legal successes have also given the crypto world a breathing space. Even then, BTC hovered above the $27,000 mark for a few days. But this enthusiasm soon faded.
Bitcoin rose to as much as $31.7k just one day after Ripple [XRP] secured a partial victory in the legal dispute with the USA Securities and Exchange Commission [SEC] on July 13th. However, it failed to maintain the price increase.
The US District Court for the Southern District of New York ruled in its ruling that Ripple’s sales of XRP tokens to crypto exchanges and although programmatic sales did not constitute investment contracts; Therefore, in this case it is not a security.
However, the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.
The crypto industry immediately picked up on the ruling and caused a price increase for all tokens. But no coin was able to sustain the price increase for long.
We should also note that in June, the SEC approved the first leveraged Bitcoin futures exchange-traded fund (ETF), namely the Volatility Shares 2x Bitcoin Strategy ETF (BITX).
The SEC has also accepted for review spot BTC ETF proposals from major traditional finance (TradFi) firms, including BlackRock, Bitwise, VanEck, WisdomTree, Fidelity and Invesco.
In August, London-based Jacobi Asset Management announced the launch of its BTC ETF in Europe.
Observers see these developments as institutional approval of cryptocurrency.
For a long time, the price of the cryptocurrency fluctuated between $200 and $1,000 on the price charts. However, at the end of 2017, BTC’s value exploded, reaching an all-time high (ATH) of almost $20,000 in December.
Although market participation increased, the price rally was short-lived. By early 2018, the price of BTC had fallen back to around $3,000. The cryptocurrency market as a whole experienced a period of decline with many traders losing significant amounts of money.
Nonetheless, Bitcoin staged a remarkable recovery, surpassing its previous peak at the end of 2020 and peaking at over $68,000 in November 2021. However, the 2022 trading year ushered in a new bear market 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 up to date with market news, following expert analysis, and using intelligent 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 capabilities and versatility, the question is whether there are other ways ChatGPT can contribute its expertise, 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 leverage 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 capable of extracting insights from financial news articles, social media posts, and other unstructured data sources.
We may use this information in conjunction with other data sets 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 whether the BTC market remains under positive sentiment or is 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 of a trading bot that I could use to track BTC price volatility in Pine script – TradingView’s programming language is useful for backtesting trading strategies. The AI replied:
Source: ChatGPT
To use ChatGPT for technical analysis, traders must be familiar with the language in order to know when to make the necessary changes to keep the code working properly. The prompt text is critical to how ChatGPT understands the problem and provides the expected solution.
For a well-rounded account, I spoke to Brian Quinlivan, the marketing director at Santiment, who also happens to have been involved in Bitcoin trading for a few years.
Brian Quinlivan holds an MBA in Finance from Chapman University and has over 10 years of experience in marketing, finance and data analytics. He enjoys building financial models to improve modern investment strategies and studying 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 uniform opinions that can result from an AI technology imposing some sort of overarching strategy, be it hodling or a basic strategy.
Individuals can easily manipulate ChatGPT to (mis)inform the audience. We are already seeing slight effects of this.
I think it can be helpful and dangerous at the same time, causing many people to become educated much more quickly, but also being steered in directions that can influence the development of cryptocurrencies and create 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 scripts would be used much more in AI because all the data could be processed at the same time and a very simple answer could be given whether to buy or sell. I believe this can have a huge impact on markets in the future.
When will BTC reach the $30,000 price mark if so?
As mentioned above, ChatGPT cannot predict the future.
To make it answer my question, I decided to jailbreak it with the Do everything now (DAN) Method. It said BTC will cross $30,000 within the next month.
Source: ChatGPT
I further questioned AI technology about Bitcoin prices between 2023 and 2024.
Source: ChatGPT
The AI bot predicted that BTC will rise to $75,000 by the end of 2024 – a completely speculative claim.
At the beginning of June, the SEC began its action against Binance [BNB] and Coinbase [COIN], resulting in a declining market. In such a situation, BTC has so far proven its resilience.
Source: BTC/USD, TradingView
At press time, BTC was trading at $26,935. Investors are hoping that the token will at least reach the $30,000 price mark again.
While BTC’s Relative Strength Index (RSI) was below the neutral 50 level, its MThe Oney Flow Index (MFI) was just above this. It is On Balance Volume (OBV) recorded an increase.
Finally, BTC’s chart metrics are not giving us a positive sign.
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Is ChatGPT’s estimate correct?
ChatGPT predicts that BTC can rise to $75,000 by the end of 2024. We will have to see if the coin can break through an all-time high in 2023-2024 due to its increasing adoption (by companies and institutions) and the attractiveness of BTC as its hedge against inflation grows.
The metrics shown on the chart do not encourage us – at least in the short term. However, it is trite to note that increased regulation and government control could cause FUD to spread and the price to fall.
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