Bitcoin Trend Prediction with Attention-Based Deep Learning Models and Technical Indicators

This study presents a comparative analysis of two advanced attention-based deep learning models—Attention-LSTM and Attention-GRU—for predicting Bitcoin price movements. The significance of this research lies in integrating moving average technical indicators with deep learning models to enhance sensitivity to market momentum, and in normalizing these indicators to accurately reflect market trends and reversals. Utilizing historical OHLCV data along with four key technical indicators (SMA, EMA, TEMA, and MACD), the models classify trends into uptrend, downtrend, and neutral categories. Experimental results demonstrate that the inclusion of technical indicators, particularly MACD, significantly improves prediction accuracy. Furthermore, the Attention-GRU model offers computational efficiency suitable for real-time applications, while the Attention-LSTM model excels in capturing long-term dependencies. These findings contribute valuable insights for financial forecasting, providing practical tools for cryptocurrency traders and investors.

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Publication Details

Journal
Systems
Published
2024-11-18
DOI
https://doi.org/10.3390/systems12110498
Citations
11
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
8.57

Funders

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article

Bitcoin Trend Prediction with Attention-Based Deep Learning Models and Technical Indicators

Ming-Che Lee
11 citations
Systems
Blockchain Technology Applications and Security
8.57
article

Bitcoin Trend Prediction with Attention-Based Deep Learning Models and Technical Indicators

Ming-Che Lee
article en
11 citations

Abstract

This study presents a comparative analysis of two advanced attention-based deep learning models—Attention-LSTM and Attention-GRU—for predicting Bitcoin price movements. The significance of this research lies in integrating moving average technical indicators with deep learning models to enhance sensitivity to market momentum, and in normalizing these indicators to accurately reflect market trends and reversals. Utilizing historical OHLCV data along with four key technical indicators (SMA, EMA, TEMA, and MACD), the models classify trends into uptrend, downtrend, and neutral categories. Experimental results demonstrate that the inclusion of technical indicators, particularly MACD, significantly improves prediction accuracy. Furthermore, the Attention-GRU model offers computational efficiency suitable for real-time applications, while the Attention-LSTM model excels in capturing long-term dependencies. These findings contribute valuable insights for financial forecasting, providing practical tools for cryptocurrency traders and investors.

SystemsVol. 12(11)
Ming Chuan University (TW)
National Science Council, National Science and Technology Council
Openalex Percentile: Top 2%
Blockchain Technology Applications and Security
8.57
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