Considering the volatility and complexity of the cryptocurrency markets, predicting price is a tough task. However, there are several methods which can be used to predict the price of a coin.
One method is a clever way of calculating the probability of a certain price closing within a specified range. Another technique involves tracking historical data to determine price trends.
Another way of predicting price is through the use of machine learning algorithms. These algorithms specialize in solving complicated problems. For instance, the Polygon Regression technique tracks historical data to calculate the probability of a price closing within a specified range.
For a more comprehensive approach, professional traders can incorporate heuristic patterns into a machine learning framework. They can also use a variety of statistical methods. Some of these include sentiment analysis, moving average, and the hidden Markov model.
Another clever method involves using a deep neural network to learn patterns from data. Deep learning algorithms are suitable for time series forecasting. This method is suitable for predicting cryptocurrency price.
Using a deep neural network is not a new idea. In fact, several studies have investigated the use of this technology. Some of the more interesting aspects of this method include its ability to detect large outliers, handle missing observations, and deal with multiple seasonality’s.
Several studies also compared a variety of deep learning algorithms. In one study, Ji and his colleagues compared Deep Neural Networks with other models to determine the best.