Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The recent bull run has set Bitcoin in motion [BTC] to as much as $35,000 this week. This is the first time since May 2022 that BTC has been able to achieve the ambitious goal.
Moreover, speculation surrounding the early approval of Bitcoin Exchange-Traded Fund (ETF) applications also led to a price increase.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently told Bloomberg’s Kailey Leinz that his agency was reviewing multiple filings. However, the SEC chairman remained tight-lipped about the lawsuit against Grayscale Investments.
In August, the court ruled that the regulator’s decision to reject Grayscale’s spot Bitcoin ETF application was “arbitrary and capricious.” This month it emerged that the regulator had decided not to contest the verdict.
Read Bitcoin’s [BTC] Price forecast 2023-24
We should note that in June the SEC approved the first leveraged Bitcoin ETF, namely the Volatility Shares 2x Bitcoin Strategy ETF (BITX). In August, London-based Jacobi Asset Management announced the launch of its BTC ETF in Europe.
Observers view these developments as institutional adoption of cryptocurrency.
For a long time, the price of the king coin fluctuated between $200 and $1,000 on the price charts. However, in late 2017, BTC’s value exploded, reaching an all-time high (ATH) of nearly $20,000 in December.
Although market participation grew, the price increase was short-lived. By early 2018, the price of BTC had fallen to around $3K. The cryptocurrency market as a whole went through a period of decline, with many traders losing significant amounts of money.
Nevertheless, Bitcoin staged a remarkable recovery, surpassing its previous ATH at the end of 2020 and reaching an ATH of over $68,000 in November 2021. However, the 2022 trading year ushered in a new era of bearishness, one exacerbated by the collapse of Terra/LUNA. and FTX.
In fact, in November 2022, Bitcoin was trading at a two-year low of $15,000.
Although the crypto market can be unpredictable and volatile, traders and investors can still make informed decisions by staying abreast of 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 ChatGPT AI model was launched to the public. In fact, it quickly received a lot of attention as well. With its wide range of capabilities and versatility, the question arises as to whether there are other ways in which ChatGPT can lend its expertise, such as assisting BTC traders in formulating and applying improved trading strategies.
When asked if it could do this, ChatGPT said the following:
Source: ChatGPT
Due to its nature as an AI tool, there are limitations to what ChatGPT can do regarding 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 create 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 can use this information in combination 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 refined to perform sentiment analysis on information from news articles, on-chain data providers, social media discussions, and other sources.
This can be used to identify whether 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 code 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 can use to track BTC price volatility in the pine script. TradingView’s programming language is useful for testing trading strategies. The AI replied:
Source: ChatGPT
To use ChatGPT for technical analysis, traders must be familiar with the language to know when to make the necessary changes for the code to work properly. The prompt text is critical to how ChatGPT understands the problem and provides the expected solution.
For a well-rounded piece, I spoke with Brian Quinlivan, the marketing director at Santiment, who also happens to have been involved in Bitcoin trading for a few years.
Brian Quinlivan has an MBA degree in Finance from Chapman University, Brian has over 10 years of experience in marketing, finance and data analytics. He enjoys creating financial models to improve modern investment strategies and studying the complexities of market variations.
Q: In what ways do you think ChatGPT can revolutionize cryptocurrency trading?
Yes, I think it will be of great use, especially for trading strategies. One thing we should be concerned about is the uniform opinions that can arise from the fact that an AI technology has some sort of overarching strategy, whether it’s hodling or a foundational strategy.
Individuals can easily manipulate ChatGPT to (mis)inform the public. We are already seeing small effects.
I think it could be useful and dangerous at the same time and get a lot of people educated much faster, but also pull in directions that could impact the way crypto goes and create a lot of self-fulfilling prophecies.
Q: How do you think a BTC trader/investor can use the AI tool to make better investment decisions?
In short, I think scripts would be used much more often in AI due to the fact that all the data could be processed at the same time and get a very simple answer: buy or sell. I believe this could greatly impact the markets in the future.
When will BTC reach $40K price?
As mentioned above, ChatGPT cannot make future predictions.
To answer my question, I decided to jailbreak it using the Do everything now (THEN) method. It was said that BTC could cross the $40,000 mark within the coming weeks or months.
Source: ChatGPT
I further questioned the AI technology about Bitcoin’s price in 2024. ChatGPT predicted that BTC will rise to $100,000-$150,000 by 2024 – a completely speculative claim.
Source: ChatGPT
In early June, the SEC began its crackdown on Binance [BNB] and Coinbase [COIN], which led to a bearish market. In such a situation, BTC has so far demonstrated its resilience.
Source: BTC/USD, TradingView
At the time of writing, BTC was trading at $34,089. Investors are hoping that the token will now reach the price of $40,000.
Both BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) were well above the neutral 50 level.. ItThe statistics on the chart very strongly point to a further bullish trend for the King Coin.
Is your portfolio green? Check out the BTC profit calculator
Are ChatGPT’s estimates correct?
ChatGPT predicts that BTC could rise to $100,000-$150,000 next year. We will have to see if the coin can break record highs in 2023-2024 due to its increased adoption (by companies and institutions) and as BTC’s appeal as a hedge against inflation grows.
The statistics on the map also encourage us, at least in the short term. However, it is trite to note that more regulation and government oversight could spread FUD, causing its price to drop.