Prediction Of Cryptocurrencies Prices Using Long Short Term Memory and Technical Indicators

The most well-known and widely adopted digital currency, Bitcoin, was created in 2009. It is the most dominant cryptocurrency in trading volume, with around 0.47 of the total market volume. Most of the previous studies in the cryptocurrency field were done to predict Bitcoin prices, but not many of them focused on the altcoins. In this study, we focused on 2 of the most famous altcoins, Ethereum and Litecoin, to predict their prices using Long-short term memory. In this study, we explore the impact of the technical indicators and the correlation of Bitcoin with the altcoins. We found that there was a significant improvement when using technical indicators along with correlation with Bitcoin. The error decreased noticeably, especially in Lite coin, where MAPE decreased by as much as 0.41.