The amazing effects of AI have shocked the world. Today, his AI-powered ChatGPT, a creation of OpenAI, is known for realistic answers to the trickiest questions. Many people are wondering about the use cases in the cryptocurrency market because ChatGPT can be used to write articles and poems and handle multiple tasks with great precision.
ChatGPT is designed to provide Pine scripts (code) compatible with trading views, using over 100 indicators for traders to identify trends in specific digital assets such as Bitcoin. It offers an easy way to develop your own trading strategy.
Here’s How ChatGPT Reacted To Bitcoin Price?
ChatGPT has made headlines in the crypto market as it has made a big splash by providing price predictions and technical analysis for crypto assets. However, when asked for market predictions, the AI vehemently refuses to offer trading guru advice, advising traders to invest at their own risk. However, AI can provide Pine scripts according to the trader’s requirements and add them to the trading view charts to develop optimal strategies.
Coinpedia therefore asked ChatGPT to generate a pine script to identify the current trend of BTC. According to ChatGPT, when Bitcoin’s rate of change (ROC) is above 0.05, it indicates an uptrend and vice versa. ChatGPT shows an extreme uptrend on his BTC price chart as Bitcoin’s ROC moves around 24.
However, ChatGPT’s pine script cannot yet be compiled to run in the trading view, but it can be trained to prepare itself for analysis on the markets. Coinpedia expanded its scope and experimented with analyzing ChatGPT by asking it to generate scripts using RSI, stochastic RSI, and simple moving averages (both short and long term).
Analysis drawn from the platform shows the Stochastic RSI trading above 80 and the RSI-14 indicator above 70 when compared to the Bitcoin price, suggesting a downward revision. Therefore, ChatGPT recommends exiting long positions as the current trend may result in downside volatility. Additionally, smaShort may fall below smaLong and Bitcoin may fall below his $20k again.
On the other hand, ChatGPT suggests keeping the Stochastic RSI at 80 as before and choosing a short position if the RSI-14 falls to just above 50. Levels 20 and 50 respectively mean that Bitcoin must trade below $20,000.