Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
Apart from bitcoins [BTC] Due to the drop in prices, the supply on the stock exchanges has decreased noticeably. Recent data suggests that this decline has hit a yearly low and whales are showing more interest.
The proportion of BTC held on exchanges had dropped to 5.80%. As highlighted in a recent Santiment post, this level represented the lowest BTC has seen since 2017.
The cryptocurrency market recently experienced a turbulent turn when the king coin saw a sharp decline. As a result, the value of BTC fell below $26,000, marking a significant drop from its previous highs.
The King Coin rose to as much as $31.7k just a day after Ripple [XRP] secured a partial victory in litigation with the United States Securities and Exchange Commission (SEC) on July 13th. However, it failed to sustain the price surge.
The US District Court for the Southern District of New York ruled in its ruling that the sale of Ripple’s 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 accepted the verdict, triggering a surge in token prices.
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 consideration spot BTC ETF proposals from major traditional finance (TradFi) firms including BlackRock, Bitwise, VanEck, WisdomTree, Fidelity and Invesco.
London-based Jacobi Asset Management recently announced the launch of its Bitcoin ETF in Europe.
Observers view these developments as institutional endorsement of cryptocurrency.
Read Bitcoins [BTC] Price prediction 2023-24
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.
Although market participation increased, the price rally was 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, which was 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 capabilities and versatility, are there other ways ChatGPT can leverage 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 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 programming language is 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 prompt text is critical to how ChatGPT understands the issue and provides the expected solution.
Is your portfolio green? Check out the Bitcoin Profit Calculator
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.
When will BTC reach the $30,000 price mark, if so?
As mentioned above, ChatGPT cannot make any predictions about the future.
So that it answers my question, I decided to jailbreak it with the Do everything now (DAN) Method. It states that it may take 4 to 6 weeks for BTC to surpass the $30,000 price mark.
Source: ChatGPT
I continued to poll AI technology on bitcoin prices between 2023 and 2024.
Source: ChatGPT
The AI bot predicted that BTC may reach $75,000 to $120,000 within those two years.
In early June, the SEC began its crackdown on Binance and Coinbase, resulting in a bearish market. In such a situation, BTC has so far demonstrated its resilience.
At press time, BTC was trading at $25,996. Investors are now hoping that the token will at least revisit the $30,000 price mark.
Both BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) are below the neutral 50 level. It is On Balance Volume (OBV) also saw a decline.
Source: BTC/USD, TradingView
Currently, BTC’s chart metrics are not pointing to a price rally.
ChatGPT might be right
ChatGPT predicts BTC to hit surprising highs. The coin is expected to hit new all-time highs in 2023-24 due to its increasing adoption (by corporations and institutions) and the increasing appeal of BTC as a hedge against inflation.
The AI bot expects BTC to reach $75,000 to $120,000 between 2023 and 2024. However, the chart numbers do not encourage us – at least in the short term.
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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