I polled ChatGPT on a possible Bitcoin rally, his response did not disappoint

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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects the opinions of the authors only.

Bitcoin (BTC) trading can be both lucrative and difficult. Developing effective trading strategies that can help traders navigate complex and ever-changing market conditions is one way to go. This is especially true when it comes to the world’s largest cryptocurrency, an asset that’s been no stranger to volatility over the years.

For a long time, the price of cryptos has been hovering between $200 and $1,000 on the price charts. However, at the end of 2017, the value of BTC exploded, reaching an all-time high of nearly $20,000 in December.

Read bitcoins [BTC] Price Prediction2023-24

As market participation increased, the rise in prices was also short-lived. At the beginning of 2018, the price of BTC had fallen back to around $3,000. The cryptocurrency market as a whole has seen a period of decline, with many investors losing significant sums.

Nonetheless, Bitcoin made a remarkable recovery, surpassing its previous all-time high at the end of 2020 and reaching an all-time high of over $68,000 in November 2021. However, the 2022 trading year ushered in a new era of decline, 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 up to date with market news, following expert analysis and using smart 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 released to the public. In fact, he also quickly caught the eye. With its wide range of capabilities and versatility, the question arises whether there are other ways ChatGPT can lend its expertise, such as helping BTC traders formulate and apply improved trading strategies.

When asked if he could do it, ChatGPT had this to say

Source: ChatGPT

Due to its nature as an AI tool, there are limits to what ChatGPT can do when it comes to price predictions and future price movements. However, there are ways to leverage the capabilities of the tools to formulate better trading strategies as a BTC trader.

One way to use the AI ​​tool to build better trading strategies is to deploy it towards fundamental analysis. ChatGPT is able to extract information from financial news articles, social media posts, and other unstructured data sources. This information can then be used in conjunction with other data sets to build informed trading strategies.

Another way to use ChatGPT as a Bitcoin trader is to use it for sentiment analysis. ChatGPT can be 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 identify if the BTC market is lingering under positive sentiment or is in the throes of negative sentiment.

Additionally, ChatGPT can be used by BTC traders for technical analysis. Traders can have ChatGPT code any technical indicator or trading bot for any trading platform.

For example, I asked ChatGPT for an example of a trading bot that I can use to track BTC price volatility in the pine scriptTradingViews programming language useful for backtesting trading strategies. The AI ​​replied,

Source: ChatGPT

To use ChatGPT for technical analysis, traders need to be familiar with the language to know when to make necessary changes for the code to work properly. The wording of the input is crucial in how ChatGPT understands the problem to provide the anticipated solution.

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For a well-rounded coin, 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, Brian has over 10 years of experience in marketing, finance and data analysis. He enjoys creating financial models to improve modern investment strategies and studying the intricacies of market variations.

Q: In what ways do you think ChatGPT can revolutionize cryptocurrency trading?

Yes, I think it is going to be very useful, certainly for trading strategies. One thing to be concerned about is the uniform opinions that can result from AI technology giving some sort of overall strategy, whether it’s a hodling strategy or a fundamental strategy.

ChatGPT could easily be used for manipulation and even unintentionally manipulate its audience, and was already seeing slight effects.

I think this can be both useful and dangerous at the same time and cause a lot of people to be educated much faster but also to be pulled in directions that can influence how crypto plays out and create many prophecies self-fulfilling.

Q: How do you think a BTC trader/investor can leverage the AI ​​tool to make better investment decisions?

I think, in short, I think scripts would be used a lot more in AI due to the fact that all the data could be digested at once and give a very simple answer whether to buy or sell. I believe this can influence the markets enormously in the future.

How soon can BTC reach $30,000 again?

As mentioned above, ChatGPT is unable to make future predictions. However, I asked him for his thoughts on when BTC would claim the psychological price of $30,000 in light of seemingly bearish macro factors.

For it to answer my question, I decided to jailbreak it using the Do Anything Now (DAN) method. He had this to say afterwards:

Source: ChatGPT

I asked AI technology more about bitcoin prices between 2023 and 2024.

Source: ChatGPT

At press time, BTC was trading at $27,145. With a moderate rise of 1.09% in one week, BTC has been hovering between prices of $27,600 and $26,000 over the past seven days. Investors are hoping that the token will recover and somehow reach the $30,000 mark.

As investors expect to recover the $30,000 level, many have taken profits from their investments. According to data from Santiment, the MVRV of the coins was 45.85% at press time, positioned in an uptrend.

Source: Santiment

A positive MVRV greater than two for any crypto-asset implies that, on average, holders can make a profit of twice their initial investment if they sell their coins at their press time price.

The sellers were spotted in control of the BTC market on the daily chart and have been over the past few days, thanks to the downward price movement seen recently. At press time, the positive (blue) directional indicator at 11:95 p.m. was resting above the negative (orange) directional indicator at 5:47 p.m.

Furthermore, the average directional index (magenta) at 16.05 revealed a bearish trend for the first cryptocurrency. BTC’s Relative Strength Index (RSI) at 54.39 was well below its neutral point of 50. The Money Flow Index (MFI) was slightly bullish at 65.43.

In conclusion, most indicators suggest a bearish price movement for the next few days.

Source: BTC/USD, TradingView

ChatGPT might be right

According to ChatGPT, the price of BTC is expected to continue to rise and reach new all-time highs between 2023 and 2024 due to increased adoption (by businesses and institutions) and the attractiveness of BTC as a hedge against the price. ‘inflation. This prediction is accurate, as favorable macroeconomic conditions can help drive the value of the main coin higher.

However, it is commonplace to note that increased regulation and government crackdowns could spread FUD, causing its price to drop.

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