Bitcoin neural network analysis week 10/2019: Consolidation

in #bitcoin5 years ago

Analysis of past week:
Last week the network saw some limited movements with a strong dip towards the end of the week. Instead we had a week where almost nothing happened. The network strategy was suboptimal, but not by much.

I am comparing three strategies, first hold fiat and make a small profit elsewhere, hold bitcoin, or follow the network predictions. Since I started documenting my predictions on the blockchain these strategies compare as

Fiat with a weekly profit of 0.5%: 14914.30$ (up 0.5 %)
Holding BTC: 3847.18$ (up 1%)
Network strategy: 4237.16$ (up 0.5%)
Starting capital: 11497.40$

The fiat strategy is up since the documented time has been a bear market. The neural network has gotten some edge above holding bitcoin.

Forecast:
download (73).png
Red areas are predicted below the current price, blue/yellow areas indicate the expected passive growth, green areas are better than the expected growth. The vertical line is one week into the future and its size provides the prediction variance. The network prediction is smooth as the random noise is filtered out.

After the rather stable week the network has massively increased the predictions for the next month. It still expects a drop, but not nearly as much as before. The drop is now expected in about two weeks and is only short-lived. The network does not yet go into the green territory, but it is compatible with another month of consolidations potentially leading into gains.
For this week very little price movement is expected.

Since the network is neutral, the strategy remains holding fiat with a 0.5% interest.

This post is not financial advice! I am testing the potential to use neural networks for price predictions and am documenting my results on the blockchain to have provable public results. All prices are based on 0:00 UTC for consistency!

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