I found out that neural networks (NN) have been broadly used to predict Bitcoin (or other cryptocurrency) prices. The common approach is to use historic price data to train the NN. When I did this, I run into troubles in times of high volatility when there is a huge jump or a crash. And this was the problem everybody else run into using ONLY historic price data.
To solve this problem I used a second NN to quantify the news to get a sentiment which I also included for the price prediction. At the moment I am using headlines and started also including tweets from twitter.
I would like to know what you think about this approach. If you are interested in this method I would be more than happy if You visited my Blog about this topic
BR, O.