Advance Detection Of Bull And Bear Phases In Cryptocurrency Markets
This work addresses the need for early detection of market trends for retail investors in volatile cryptocurrency markets, but it is incremental as it applies existing methods to new data.
The paper tackled the problem of predicting bull and bear phases in cryptocurrency markets by forecasting Bitcoin's performance using predictive algorithms, with the result being the ability to calculate and plot 50-day and 200-day moving averages to identify these phases.
Cryptocurrencies are highly volatile financial instruments with more and more new retail investors joining the scene with each passing day. Bitcoin has always proved to determine in which way the rest of the cryptocurrency market is headed towards. As of today Bitcoin has a market dominance of close to 50 percent. Bull and bear phases in cryptocurrencies are determined based on the performance of Bitcoin over the 50 Day and 200 Day Moving Averages. The aim of this paper is to foretell the performance of bitcoin in the near future by employing predictive algorithms. This predicted data will then be used to calculate the 50 Day and 200 Day Moving Averages and subsequently plotted to establish the potential bull and bear phases.