ChatGPT predicts Bitcoin will hit $35,000 in three months, but…

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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] soared to $31,700 in one day from Ripple [XRP] winning a partial victory in its legal battle with the United States Securities and Exchange Commission (SEC) on July 13. But it failed to sustain the price rise and is holding at the price level of $30,000.

At press time, BTC was trading at $29,928.

The U.S. District Court for the Southern District of New York ruled in its judgment that the sale of Ripples XRP tokens on crypto exchanges and although programmatic sales do not constitute investment contracts; therefore, it is not a security in this case. But the court also ruled that the institutional sale of XRP tokens violated federal securities laws.

The crypto industry instantly embraced the judgment, driving up prices on the tokens.

It should also be noted that the SEC last month approved the first leveraged Bitcoin futures exchange-traded fund (ETF), namely the Volatility Shares 2x Bitcoin Strategy ETF (BITX).

The SEC has so far accepted six BTC spot ETF proposals from traditional finance companies (TradFi), namely BlackRock, Bitwise, VanEck, WisdomTree, Fidelity and Invesco.

Observers view these developments as an institutional endorsement of cryptocurrency.

Read bitcoins [BTC] Price Prediction2023-24

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 (ATH) of nearly $20,000 in December.

Although market participation increased, the price rally was short-lived. At the beginning of 2018, the price of BTC had fallen back to around $3,000. The cryptocurrency market as a whole saw a period of decline, with many traders losing significant sums.

Nevertheless, Bitcoin made 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 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 on top of 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. 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 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, BTC traders can use ChatGPT 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 I can use to track BTC price volatility in the pine script programming languageTradingViews is useful for testing 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 prompt text is crucial in how ChatGPT understands the problem and provides the anticipated solution.

Is your wallet green? Discover the Bitcoin Profit Calculator

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.

Individuals can easily manipulate ChatGPT to (mis)inform the public. We are 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 self-fulfilling prophecies.

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.

Will BTC break through the $35,000 price level?

As mentioned above, ChatGPT cannot make future predictions.

However, I asked him for his opinion on when BTC would claim the $35,000 prize.

Source: ChatGPT

For it to answer my question, I decided to jailbreak it using the Do Anything Now (DAN) method. He predicts that BTC will reach the price level of $35,000 in the next two weeks.

Source: ChatGPT

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

Source: ChatGPT

In early June, the SEC began its crackdown on Binance and Coinbase, resulting in a bear market. In such a situation, BTC has shown its resilience so far.

At press time, BTC was trading at $29,928. Investors are now hoping for the token to cross the $35,000 mark.

While BTC’s Relative Strength Index (RSI) hovered just along the neutral 50 mark, its Money Flow Index (MFI) hovered below. On Balance Volume (OBV) tokens showed downward movement.

Source: BTC/USD, TradingView

For now, the BTC chart indicators do not suggest a price rally.

ChatGPT might be right

ChatGPT predicts that BTC will reach surprising highs. He expects the coin to reach new all-time highs in 2023-24 due to increased adoption (by businesses and institutions) and as BTC attracts as inflation hedging expands. However, its chart indicators do not encourage us, at least in the short term.

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

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