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Navigating Bitcoin Panic-Selling using Linear Approach

2020; LPPM Institut Teknologi Telkom Purwokerto; Volume: 12; Issue: 4 Linguagem: Inglês

10.20895/infotel.v12i4.543

2460-0997

Agi Prasetiadi,

Market Dynamics and Volatility

COVID-19 affects significant human activity around the globe, including Bitcoin prices. The Bitcoin price is well known for its volatility, so it is not a big shocker when the panic-selling occurs during the pandemic. However, the mechanism to cope with these breakouts, especially the bearish one, is contentious. The experts give numerous pieces of advice with different conclusions in the end. It is also the same with Machine Learning. Various kernels show different results regarding how the price will move. It depends on the window size, how the data is being preprocessed, and the algorithm used. This paper inspects the best combination that various machine learning can offer with a linear approach to navigate the price prediction based on its depth interval, window size until the algorithms themselves. This paper also proposed a new approach to seeing the prediction range called s-steps ahead prediction using a linear model. The result shows that simple machine learning can herd 99.715% profit even during the bearish breakout.