Key Takeaways
Our forecasting model is based on AI (Artificial Intelligence) and should explicitly be seen as experimental. None of our content constitutes financial or investment advice.
Forecasts found online — whether produced by humans or AI models — should never serve as the sole basis for investment decisions. Always conduct your own research and be aware of how volatile and risky cryptocurrency investments can be.
Mathematical models are inherently limited and should be used with caution, as they can’t account for unforeseen events. Making a forecast is like driving while only looking in the rear-view mirror.
Our model is built on GPT-4 (Custom GPT), a multimodal large language model developed by OpenAI, a leading company in the field of artificial intelligence research.
How We Create Our Crypto Price Forecasts
We use AI (Artificial Intelligence) to generate our cryptocurrency price predictions automatically. At its core, our model relies on the historical price data (opening and closing prices for each trading day) of the respective cryptocurrency.
The forecasting model is further refined and adjusted through various calculations to better capture the dynamics of the crypto markets, such as volatility, trends, and momentum. It’s also influenced by market sentiment and signals from technical analysis indicators.
Important Disclaimer: Never use the data from our forecasting model as the basis for making investment decisions. It’s simply impossible for either humans or computers to produce a reliable prediction of financial market behavior. Consider this purely an experimental tool—not investment advice.
Techniques Used in Our Forecasting Model
Our model uses a range of techniques and calculations to estimate potential future market developments. Here’s a look at some of the key methods:
Polynomial Modeling: Uses polynomial equations to map relationships between variables. This helps the model identify complex patterns in historical data and forecast price movements over time.
Trend Analysis: Analyzes past price movements to detect patterns and directional trends. This assists in predicting future price directions based on ongoing or reversing trends.
Fibonacci Retracements: Based on the Fibonacci sequence, this technique identifies potential support and resistance levels in price charts. It helps forecast how far a price might retrace after a significant move.
Logarithmic Smoothing: Employs logarithmic functions to model changes in price momentum, allowing the model to detect slowdowns or weakening trends and produce more realistic forecasts.
Volatility Analysis: Measures market volatility to better assess risk and uncertainty in price developments. This is especially crucial for forecasting movements in highly volatile assets like cryptocurrencies.
Besides the experimental AI-generated price forecasts, our forecast dashboards also provide a range of other metrics and data points that can help you analyze and evaluate any cryptocurrency.
Future Development
As rapidly as the crypto markets evolve, so do AI models. We continuously experiment with this emerging technology and strive to improve our forecasting models, dashboards, and data points.
We firmly believe that powerful AI systems will increasingly shape forecasting models for financial assets like stocks, commodities, and cryptocurrencies. The remarkable ability of these models to process vast amounts of data and detect anomalies will play a central role in their future relevance.
About the author
Hi, I'm Philipp. 👋
Founder coinbird.com
With over 15 years of experience in the IT sector, I love building easy-to-use digital products that actually help people. In 2017, I fell down the Bitcoin rabbit hole and gradually realized that the crypto world lacked simple, user-friendly tools for everyday people. That’s why I created coinbird.com – to make crypto easier to understand, more accessible, and transparent.
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