Volume 2 • Issue 2 • PP: 18-26 • 2023
Time Series Forecasting of Cryptocurrency Prices with Long Short-Term Memory Networks
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The rapid evolution of cryptocurrencies has brought transformative changes to the financial landscape. Cryptocurrency prices, characterized by their inherent volatility, pose challenges for precise forecasting. This study introduces a novel approach to cryptocurrency price forecasting, leveraging Long Short-Term Memory (LSTM) networks, known for discerning temporal dependencies within time series data. Motivated to enhance prediction accuracy, this research investigates the effectiveness of LSTM networks in capturing complexities inherent in cryptocurrency price movements. The proposed methodology involves meticulous data collection and preprocessing, utilizing an extensive dataset from Kaggle. This dataset forms the foundation for predictive modeling and facilitates an in-depth analysis of cryptocurrency price dynamics. Exploratory data analysis, including visualization techniques, and a dedicated Time Series Analysis precede the implementation of predictive models, such as LSTM networks. Results and evaluation showcase promising outcomes, emphasizing the models' precision, accuracy, and explanatory power. The Mean Absolute Error (MAE) of 0.0177 underscores the precision achieved in predicting cryptocurrency prices, while the Mean Squared Error (MSE) of 0.00066 and the R² Score of 0.9486 attest to our models' overall accuracy and explanatory power. This research significantly contributes to understanding cryptocurrency forecasting by incorporating LSTM networks, paving the way for advancements in this evolving domain.
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References
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