Bitcoin (BTC) trading can be both profitable and daunting. Experienced traders need to develop effective strategies to survive in the ever-changing market. This is particularly true for BTC, an asset known to be highly volatile.
The crypto’s price stayed between the $200 to $1,000 mark for some time. Later, the price skyrocketed and hit a record high of nearly $20,000 in December 2017, only to crash again early 2018 and settle down at around $3,000. BTC then made an impressive come back, surpassing its previous peak and trading at an all-time high of over $68,000 in November 2020.
The market went downhill again in 2022. BTC recorded a two-year low of $15,000. Despite its unpredictability and high volatility, traders can still make prudent decisions and apply sound trading strategies with AI help. ChatGPT serves as a common AI aid to grow crypto trading. It has features such as automated news analysis and sentiment assessment.
However, ChatGPT does not have the capability to provide future price predictions. Moreover, its use of some specific jargon can confuse users.
Brian Quinlivan is a crypto expert with a Finance MBA from Chapman University, and he has been actively trading BTC for the past few years. He believes that ChatGPT could revolutionize cryptocurrency trading, though it might be dangerous. He recommends using a balanced approach to leverage the AI tool and make better investments.
According to him, scripts from ChatGPT can easily be used for AI to digest data and give sellers/buyers recommendations. He advocates caution since this can influence the market in unexpected ways.
ChatGPT can also bee applied for technical analysis, such as coding customized bots for any trading platform and performing trend analysis.
At the time of writing, BTC was trading at $27,145. With a week of moderate growth and its MVRV ratio was 45.85%, BTC investors were all set to see the $30k-price mark, knowing that a positive MVRV is more profitable. However, the bearish market rested the Positive Directional Indicator (blue) at 23.95, below the orange Negative Directional Indicator at 17.47.
But according to ChatGPT, BTC is expected to set record highs between 2023 and 2024 due to increased adoption (by companies and institutions) and BTC’s increasing appeal as a hedge against inflation.
Santiment is a company specialized in market analysis and metrics for the crypto space, from tracking down prices of different tokens to providing trends and analytics to traders and investors. As its experts monitor global markets, Santiment serves as a reliable source for informed decision making in trading arenas. Brian Quinlivan, the company’s Director of Marketing, has been using his MBA in Finance from Chapman University to bolster modern investing strategies and understand sophisticated market models. His research and knowledge have allowed Santiment to become a record-breaking company.
