How can we predict the movement of virtual currency prices?
According to Abraham et al. (2018) study, we can predict through the volumn of tweets on Twitter.
The authors have developed a tool to predict cryptocurrency prices using Google Trends and Twitter information.
As a result, they developed a prediction program using Big Data and machine learning techniques.
As you can see in the picture below, the volumn of tweets related to cryptocurrency on Twitter is very similar to the price of bitcoin.
Unlike before 2017, when we were less interested in cryptocurrency , we can see clearly that the correlation has increased since 2017.
They made a price prediction program using machine learning technique, and it was able to predict the price of bitcoin quite similarly using SNS information.
There are some investors who use various charts, but those who are good at machine-learning techniques seem to be good at investing in cryptocurrency with this approach.
Reference
Abraham, Jethin; Higdon, Daniel; Nelson, John; and Ibarra, Juan (2018) "Cryptocurrency Price Prediction Using Tweet Volumes and Sentiment Analysis," SMU Data Science Review: Vol. 1 : No. 3 , Article 1.