What is Price prediction?

The act of attempting to forecast the future value or cost of a particular asset, commodity, or currency based on various factors such as historical data, market trends, and economic indicators.

Cryptocurrency prediction: The application of machine learning algorithms to predict the future price fluctuations of cryptocurrencies by analyzing past data and other pertinent variables.

Price prediction: How does it work?

Let’s take a closer look at how machine learning is used to predict prices. Machine learning models rely on Technical and Fundamental Analysis to forecast prices. This involves examining a range of external and internal factors, such as seasonal trends and daily fluctuations, to determine the most likely time for a consumer to make a purchase.

Technical analysis looks at historical prices, economic growth rates, and other related factors, formulating an approximate price. Then, to get a more accurate picture of the market, the process turns to fundamental analysis. 

These processes are referred to as regression analysis in mathematical terms. It is a statistical method for predicting the connection between variables, where one variable is independent, and one or more are dependent.

When predicting prices, the independent variable is the price itself, which is influenced by numerous dependent variables. For instance, if we were attempting to determine the cost of an apple, it would be influenced by factors like the size of the Burger and the cost of its Elements/ingredients.

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