Dynamic Analysis of Bitcoin Fluctuations by Means of a Fractal Predictor

Jesús Jaime Moreno Escobar, Oswaldo Morales Matamoros, Ana Lilia Coria Páez, Ricardo Tejeida Padilla

Abstract: Using of cryptocurrency has boomed in recent years, such as Bitcoin, Ethereum or Ripple. It is interesting to have a Bitcoin forecasting tool to try to understand the trends at global economic level. A virtual currency that can be used as a means of payment just like physical money. Any cryptocurrency uses peer-to-peer technology and is not controlled by any economic or political entity, such as a bank or government. In 2009, Bitcoin was conceived and was priced at 0.39 USD reaching its all-time high in 2017 with a price of 17,549.67 USD, i.e. 45 thousand times more in less than 10 years. This work focuses on predicting bitcoin-price trending will have in 2020 by using a Self-Affine Fractal Analysis as a tool of artificial intelligence. The results provided by present work in first 6 months agree with 98% with those actually obtained despite training only with data from first days of time series.