An optimized anomaly detection for bitcoin prices using LSTM and DBSCAN methods
摘要
Bitcoin, a decentralized digital currency, has garnered significant attention in the financial world. The extreme volatility of bitcoin prices presents both opportunities and risks for investors. To navigate this landscape, accurate price forecasting and the identification of anomalies are paramount. This research delves into the application of anomaly detection techniques to enhance bitcoin price forecasting, leveraging the strengths of multiple algorithms. The study primarily focuses on the design and implementation of Long Short-Term Memory (LSTM) and Density-based Spatial Clustering of Applications with Noise (DBSCAN) models. To achieve these objectives, historical Bitcoin price data in USD is collected, preprocessed, and used to train and evaluate the LSTM and DBSCAN-based models. For anomaly detection on Bitcoin price, we specifically focused on the LSTM-type model and DBSCAN techniques. Anomaly detection techniques, such as statistical analysis and DBSCAN, are integrated into the models to identify and flag instances of unusual market behavior. The research evaluates the effectiveness of these models in enhancing the accuracy and robustness of price predictions while effectively identifying and handling anomalies. The findings from this research contribute to the growing body of knowledge on cryptocurrency price forecasting by integrating the algorithms with advanced anomaly detection techniques.