Bitcoin price prediction using LSTM autoencoder regularized by false nearest neighbor loss

We implement deep learning for predicting bitcoin closing prices. Identifying two new determiners, we propose a novel LSTM Autoencoder using Mean Squared Error (MSE) loss which is regularized by False Nearest Neighbor (FNN) algorithm. The method results in reduced error rates when compared to traditional forecasting algorithms and is statistically validated. This research contributes by developing a robust algorithm that accurately determines the fluctuation directions in bitcoin prices and results in values closer to the actual prices.