Securing BitCoin Price Prediction using the LSTM Machine Learning Model

This research explores the application of Long Short Term Memory (LSTM) networks for short term Bitcoin price prediction, addressing the need for reliable models due to Bitcoins high volatility and trading volume. The study employs historical data from Kaggle to predict the direction and magnitude of price changes within a five minute interval. Implementation includes preprocessing the data, normalizing prices, and generating sequences for LSTM input. Two LSTM models were developed: one for directional prediction and another for magnitude. Training results showed a directional accuracy of approximately 75.10 Percent, demonstrating the feasibility of LSTM networks for financial forecasting and contributing to Bitcoin price prediction research, setting the stage for future real time applications.

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Publication Details

Journal
Indian Journal of Economics and Finance
Published
2024-11-28
DOI
https://doi.org/10.54105/ijef.b1429.04021124
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
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article

Securing BitCoin Price Prediction using the LSTM Machine Learning Model

Kannan Balasubramanian
Indian Journal of Economics and Finance
Blockchain Technology Applications and Security
article

Securing BitCoin Price Prediction using the LSTM Machine Learning Model

Kannan Balasubramanian
article en

Abstract

This research explores the application of Long Short Term Memory (LSTM) networks for short term Bitcoin price prediction, addressing the need for reliable models due to Bitcoins high volatility and trading volume. The study employs historical data from Kaggle to predict the direction and magnitude of price changes within a five minute interval. Implementation includes preprocessing the data, normalizing prices, and generating sequences for LSTM input. Two LSTM models were developed: one for directional prediction and another for magnitude. Training results showed a directional accuracy of approximately 75.10 Percent, demonstrating the feasibility of LSTM networks for financial forecasting and contributing to Bitcoin price prediction research, setting the stage for future real time applications.

Indian Journal of Economics and FinanceVol. 4(2)
Openalex Percentile: Top 67%
Blockchain Technology Applications and Security
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