An Autonomous Institute affiliated to University of Mumbai

Accredited by NAAC and NBA, Approved by AICTE, New Delhi

“BITCOIN PRICE PREDICTION”

T.Y Minor Project Report

Submitted in partial fulfillment of the requirements of the

Degree of Bachelor of Engineering in Computer
Engineering By

B 45 - Manan Salia

B 32 - Usaid Khan

B 59 - Harsh Sokiya

Supervisor

Mrs. CHITRA BOLE

Department of Computer Engineering

K. J. Somaiya Institute of Engineering and Information Technology
Ayurvihar, Sion, Mumbai -400022 2021-22

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Place: Sion, Mumbai-400022
 CERTIFICATE

This is to certify that the project entitled “Bitcoin Price Prediction” is bonafide
work Students name submitted to the University of Mumbai in partial fulfillment
of the requirement in Project, for the award of the degree of “Bachelors of
Engineering” in “Computer Engineering”

Chitra Bhole
Project Guide
Assistant Professor
Department of Computer Engineering

Dr. Sarita Ambadekar Dr. Suresh K

Head of Department Ukarande Principal
Dept. of Computer Engineering KJSIEIT

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 PROJECT APPROVAL FOR T. Y.

This project report entitled

‘Bitcoin Price Prediction’

Manan Salia– B/45

Usaid Khan– B/32

Harsh Sokiya– B/59

is an approved Third Year Project in Computer Engineering.

EXAMINER:

1. _______________

2. _______________

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 DECLARATION

We declare that this written submission represents our ideas in our own words and where
other's ideas or words have been included, we have adequately cited and referenced the
sources. We also declare that we have adhered to all principles of academic honesty and
integrity and have not misrepresented or fabricated or falsified any idea/data/fact/source in
our submission. We understand that any violation of the above will be cause for disciplinary
action by the Institute and can also evoke penal action from the sources which have thus not
been properly cited or from whom proper permission has not been taken when needed.

Student Name Usaid Khan

Student name Manan Salia

Student name Harsh Sokiya

Date:

iii
 ACKNOWLEDGEMENT

Before presenting our Minor Project work entitled “Bitcoin Price Prediction”, we would like to
convey our sincere thanks to the people who guided us throughout the course for this project work.

First, we would like to express our sincere thanks to our beloved Principal Dr. Suresh Ukarande
and Vice principal Dr. Sunita Patil for providing various facilities to carry out this report.

We would like to express our immense gratitude towards our Mrs. Chitra Bole for the
constant encouragement, support, guidance, and mentoring at the ongoing stages of the project and report.

We would like to express our sincere thanks to our H.O.D. Dr. Sarita Ambadekar, for the
encouragement, co-operation, and suggestions progressing stages of the report.

Finally, we would like to thank all the teaching and non-teaching staff of the college, and our
friends, for their moral support rendered during the course of the reported work, and for
their direct and indirect involvement in the completion of our report work, which made our endeavor fruitful.

Student Name Usaid

Khan
Student name Harsh Sokiya
Student name Manan
Salia

Place: Sion, Mumbai-400022

Date:

iv
 ABSTRACT

In this project we are developing a predictor for “Bitcoin”.

Bitcoin is one of the most popular and valuable cryptocurrency in the current
financial market, attracting traders for investment and thereby opening new research
opportunities for researchers. Countless research works have been performed on
Bitcoin price prediction with different machine learning prediction algorithms. For
the research: relevant features are taken from the dataset having strong correlation
with Bitcoin prices and random data chunks are then selected to train and test the
model.

The main aim of this is to learn the price of Bitcoin at different times and then
predict the future price. This will help to manage the foundation of a person’s
portfolios and invest carefully. This particular project deals with using datasets of
previous bitcoin prices, understanding and learning how the price rises and falls
effectively. Then after learning, the algorithm can predict the future price of bitcoin
upto a week.
 INDEX

CHAPTER 1 : INTRODUCTION
⦁ Introduction
⦁ Problem introduction

CHAPTER 2: LITERATURE REVIEW

⦁ Literature Survey

CHAPTER 3: REQUIREMENTS SPECIFICATION

⦁ Hardware requirements
⦁ Software requirements

CHAPTER 4 : PROJECT ANALYSIS & DESIGN

⦁ Proposed System
⦁ Feasibility study
⦁ Economic Feasibility
⦁ Technical Feasibility
⦁ Operational Feasibility
⦁ Software specification

CHAPTER 5 : IMPLEMENTATION
● Introduction
● Website Screenshots

CHAPTER 6 : TESTING
● Introduction to system testing
● Types of Testing
● Testing of project

CHAPTER 7 : CONCLUSION

CHAPTER 8 : REFERENCES
 CHAPTER 1
INTRODUCTION

1.1 Introduction:

Instead of any direct human investments, generating profit with the help of algorithms is a
common practice in the stock market. Many case studies have been performed to reach the
conclusion that mathematical models warrant better results than humans. Bitcoins are an eye
catching initiative in the fields of cryptography, economics, and computer sciences, as such
currencies have a special character which is gained when integrating currency units with
cryptographic technology. Due to the fact that cryptocurrency has a minute history, when
compared to the stock market, new and unexplored territories are thus being scouted.

Structurally, both the stock market and the cryptocurrency price data are having characteristics
such as time series data, but high volatility is routinely present in the latter, with heavy
wavering in the prices. A cryptocurrency market differs from a traditional stock market in the
respect that the former has a lot of new features. It is required to apply new techniques for
prediction suitable for the cryptocurrency market.

1.2 Problem Introduction

To develop a model which can help us to predict the price of the crypto currency used (in this case:
Bitcoin), with low error rate and a high precision of accuracy. The model will not tell the future, but it
might forecast the general trend and the direction to expect the prices to move.
 CHAPTER 2

REVIEW OF LITERATURE

Literature Survey:

We have all considered where bitcoin costs will be one year, two years, five years or even 10 years from now. It's
really difficult to anticipate however each and every one of us loves to do it. Tremendous measures of benefits can
be made by purchasing and selling bitcoins, whenever done accurately. It has been proven to be a fortune for many
people in the past and is still making them a lot of money today. But this doesn’t come without its downside too. If
not thought of and calculated properly, you can lose a lot of money too. You should have an incredible
comprehension of how and precisely why bitcoin costs change (organic market, guidelines, news, and so forth),
which implies you should realize how individuals make their bitcoin predictions. Considering these things (supply
and demand, regulations, news, etc.), one must also think about the technology of bitcoin and its progress. This
aside, we now have to deal with the technical parts using various algorithms and technologies which can predict
precise bitcoin prices. Although we came across various models which are currently present like Biological neural
networks. (BNN), Recurrent neural network (RNN), Long short-term memory (LSTM), Auto regressive integrated
moving average (ARIMA), etc. with machine learning and deep neural network concepts. Normally a time series is
a sequence of numbers. This is due to the fact that this being a time series data set, the overall data sets should be
split into two parts: inputs and outputs.Moreover, LSTM is great in comparison with the classic statistics linear
models, since it can very easily handle multiple input forecasting problems.

In the approach which we are following, the LSTM will use the previous data to predict bitcoin prices 7 days ahead
of its closing price. In the approach used by us, we implement Bayesian optimized Recurrent Neural Network
(RNN) and a Long Short Term Memory (LSTM) network. The highest classification accuracy is achieved by
LSTM with the accuracy of 52% and a RMSE of 8%. Presently we execute the famous Auto backward
incorporated moving normal (ARIMA) model for time arrangement gauging as a correlation with the profound
learning models. The ARIMA forecast is out performed by the nonlinear deep learning methods which performed
much better. Finally both the profound learning models are benchmarked on both a GPU and CPU. The training
time on the CPU is outflanked by the GPU execution by 67.7%. In the base papers selected by us, the author
collected a data set of over 25 features relating to the bitcoin price and payment network over a period of five
years, recorded on a daily basis were able to predict the sign of the daily bitcoin price change with an incredible
accuracy of 98.7%.

In the second period of our examination we are just focusing on the bitcoin price information alone and utilized
information at a 10 minutes and 10 seconds time frame. This is due to the fact that we saw an incredible
opportunity to precisely evaluate price predictions at various levels of granularity and noisiness. This resulted in
incredible results which had 50 to 55% accuracy in precisely predicting the future bitcoin price changes using 10
minute time intervals.
 CHAPTER 3

REQUIREMENT SPECIFICATION

3.2 INTRODUCTION:

To be used efficiently, all computer software needs certain hardware components or

the other software resources to be present on a computer. These prerequisites are
known as(computer) system requirements and are often used as a guideline as opposed
to an absolute rule. Most software defines two sets of system requirements: minimum
and recommended. With increasing demand for higher processing power and
resources in newer versions of software, system requirements tend to increase over
time. Industry analysts suggest that this trend plays a bigger part in driving upgrades
to existing computer systems than technological advancements.

3.3 HARDWARE REQUIREMENTS:

The most common set of requirements defined by any operating system or software
application is the physical computer resources, also known as hardware. A hardware
requirements list is often accompanied by a hardware compatibility list (HCL), especially in
case of operating systems. An HCL lists tested, compatibility and sometimes incompatible
hardware devices for a particular operating system or application. The following subsections
discuss the various aspects of hardware requirements.
HARDWARE REQUIREMENTS FOR PRESENT PROJECT:
PROCESSOR : Intel Pentium dual core or above.
RAM : 1 GB
HARD DISK : 160 GB
Network Interface.
 3.4 SOFTWARE REQUIREMENTS:

Software Requirements deal with defining software resource requirements and prerequisites
that need to be installed on a computer to provide optimal functioning of an application.
These requirements or pre-requisites are generally not included in the software installation
package and need to be installed separately before the software is installed.

SOFTWARE REQUIREMENTS FOR OUR PROJECT:

OPERATING SYSTEM: Windows XP and above, Ubuntu v12.04 and above.

FRONT END: HTML, CSS, Javascript

SERVER SIDE SCRIPT: PHP, XAMPP Server.

DATABASE: Firebase
 CHAPTER 4

ANALYSIS

4.01 PROPOSED SYSTEM:

“BITCOIN PRICE PREDICTION” is a machine learning bitcoin predictor developed for

predicting future prices of bitcoin over a week.

4.02 FEASIBILITY STUDY

The feasibility of the project is analyzed in this phase and the proposal is put forth with a very
general plan for the project and some cost estimates. During system analysis the feasibility
study of the proposed system is to be carried out. This is to ensure that the proposed system is
not a burden to the foundation. For feasibility analysis, some understanding of the major
requirements for the system is essential.
Three key considerations involved in the feasibility analysis are:

4.03 Economic Feasibility

Users just have to observe the graphical predictions and search for their requirements. As this
a predictor is primarily based on Machine Learning.
 4.04 Technical Feasibility

The technical feasibility assessment meets with the expected needs of the proposed system. It
has evaluated that hardware and software meets the needs of the proposed system.The
following outline design of system requirements:
->HTML
->PHP
->CSS
->JAVASCRIPT

MODEL : LSTM MODEL

PROJECT TYPE: MACHINE LEARNING

LANGUAGE: PYTHON

TECHNOLOGY : PYCHARM IDE PLATFORM , VS CODE AND GOOGLE COLAB

SOFTWARES: VS CODE ,GOOGLE COLAB AND JUPITER

To deal with requirements to handle completion of the project we are having a strong
resource of knowledge over the required technologies among our group members.
Furthermore, these technologies are being taught in depth in WT tutorials to overcome any of
the difficulties. Also the technologies required are economically and legally feasible for
implementation purpose

4.05 Operational Feasibility

Website for the foundation is a way that users can use to buy products online and donate
items. It is easy and convenient to use this site to buy products, the user will not have to go
outside anywhere to buy. Online pictures are also provided so that practically the users will
understand the actual product.
 SOFTWARE SPECIFICATION

Firstly, we collect the data set from the online source: Kaggle. The data set represents the Bitcoin price
in United States Dollars (USD). The dataset includes all the information about bitcoin prices from 27th
October, 2015 to 30th October, 2022.

The second step involves filtering and cleaning the data set. This involves removing all the incomplete
data from the rows. It also involves filtering out unnecessary features present in the data collected.

Finally after the processes of training with the help of the data set features and testing, we evaluate the
accuracy of our model. We compare the predicted price of the crypto currency, at a given time period
with the real world Bitcoin price at that particular period of time, and evaluate the accuracy and
efficiency of our model.

Authentication – Firebase Authentication makes it easy for developers to build secure authentication
systems and enhances the sign-in and onboarding experience for users. This feature offers a complete
identity solution, supporting email and password accounts, phone auth, as well as Google, Facebook,
GitHub, Twitter login and more.

Crashlytics – Firebase Crashlytics is a real-time crash reporter that helps developers track, prioritize
and fix stability issues that reduce the quality of their apps. With crashlytics, developers spend less
time organizing and troubleshooting crashes and more time building features for their apps.

Performance – Firebase Performance Monitoring service gives developers insight into the performance
characteristics of their iOS and Android apps to help them determine where and when the performance
of their apps can be improved.

Test lab – Firebase Test Lab is a cloud-based app-testing infrastructure. With one operation,
developers can test their iOS or Android apps across a variety of devices and device configurations.
They can see the results, including videos, screenshots and logs, in the Firebase console.
 CHAPTER 5
IMPLEMENTATION

5.1 Introduction:
We plan to Implement our website in a slow and gradual manner. We will cover
all the policies and requirements of the early learning center.
The implementation stage involves careful planning, investigation of the
existing system and its constraints on implementation, designing of
methods to achieve changeover and evaluation of changeover methods.

Screenshots :
 CHAPTER 6

TESTING

6.2 Introduction To System Testing:

The purpose of testing is to discover errors. Testing is the process of trying to discover every
conceivable fault or weakness in a work product. It provides a way to check the functionality
of component sub-assemblies, assemblies, and/or a finished product. It is the process of
exercising software with the intent of ensuring that the Software system meets its
requirements and user expectations and does not fail in an unacceptable manner. There are
various types of test sets. Each test type addresses a specific testing requirement.

6.3 Types Of Testing:

1. Unit testing:
Unit testing involves the design of test cases that validate that the internal program logic is
functioning properly, and that program inputs produce valid outputs. All decision branches
and internal code flow should be validated. It is the testing of individual software units of
the application .It is done after the completion of an individual unit before integration. This
is a structural testing that relies on knowledge of its construction and is invasive. Unit tests
perform basic tests at component level and test a specific business process, application,
and/or system configuration. Unit tests ensure that each unique path of a business process
performs accurately to the documented specifications and contains clearly defined inputs
and expected results.

2. Integration testing:
Integration tests are designed to test integrated software components to determine if they
actually run as one program. Testing is event driven and is more concerned with the basic
outcome of screens or fields. Integration tests demonstrate that although the components
were individually satisfactory, as shown by successfully unit testing, the combination of
components is correct and consistent. Integration testing is specifically aimed at exposing
the problems that arise from the combination of components.

3. Functional test:
Functional tests provide systematic demonstrations that functions tested are available as
specified by the business and technical requirements, system documentation, and user
manuals.

Functional testing is centered on the following items:

Valid Input : identified classes of valid input must be accepted.
Invalid Input : identified classes of invalid input must be rejected.
Functions : identified functions must be exercised.
Output : identified classes of application outputs must be exercised.
Systems/Procedures: interfacing systems or procedures must be invoked.

Organization and preparation of functional tests is focused on requirements, key functions, or

special test cases. In addition, systematic coverage pertaining to identify Business process
flows; data fields, predefined processes, and successive processes must be considered for
 testing. Before functional testing is complete, additional tests are identified and the
effective value of current tests is determined.

4. System Test:
System testing ensures that the entire integrated software system meets requirements. It
tests a configuration to ensure known and predictable results. An example of system testing
is the configuration oriented system integration test. System testing is based on process
descriptions and flows, emphasizing pre-driven process links and integration points.

5. White Box Testing:

White Box Testing is a testing in which in which the software tester has knowledge of the
inner workings, structure and language of the software, or at least its purpose. It is purpose.
It is used to test areas that cannot be reached from a black box level.

6. Black Box Testing:

Black Box Testing is testing the software without any knowledge of the inner workings,
structure or language of the module being tested. Black box tests, as most other kinds of
tests, must be written from a definitive source document, such as specification or
requirements document, such as specification or requirements document. It is a testing in
which the software under test is treated as a black box .you cannot “see” into it. The test
provides inputs and responds to outputs without considering how the software works.

7. Unit Testing:
Unit testing is usually conducted as part of a combined code and unit test phase of the
software lifecycle, although it is not uncommon for coding and unit testing to be conducted
as two distinct phases.

8. Integration Testing:
Software integration testing is the incremental integration testing of two or more integrated
software components on a single platform to produce failures caused by interface defects.
The task of the integration test is to check that components or software applications, e.g.
components in a software system or – one step up – software applications at the company
level – interact without error.

9. Acceptance Testing:
User Acceptance Testing is a critical phase of any project and requires significant
participation by the end user. It also ensures that the system meets the functional
requirements.
 6.4 Testing of Project

Test strategy and approach

Field testing will be performed manually and functional tests will be written in detail.

Test objectives
● All field entries must work properly.
● Pages must be activated from the identified link.
● The entry screen, messages and responses must not be delayed

Features to be tested
● Verify that the entries are of the correct format
● No duplicate entries should be allowed
● All links should take the user to the correct page.

Test Table
 CHAPTER 7

CONCLUSION

The LSTM model, implemented here, is a basic model that takes into consideration only a
few features that affect the Bitcoin price. Our model is fairly accurate when predicting the
future prices. However, to increase the efficiency of the model, more Bitcoin price features
need to be taken into consideration. We recommend using Kaggle as the source of
datasets, since information present in this website holds a high degree of authenticity. Our
future work would include in-depth scrutinization on the topic of LSTM, and deep learning
at large. Such fact-findings would be beneficial for forecasting the prices of
cryptocurrencies with the help of LSTMs, in the future.
 CHAPTER 7
REFERENCES

1) https://www.sciencedirect.com

2) https://www.granthaalayahpublication.org

3) https://ieeexplore.ieee.org

4) https://www.youtube.com

5) A. Rana, R. Kachchhi, J. Baradia, V. Shelke “Stock Market Prediction

Using Deep Learning” International Research Journal of Engineering and
Technology, Volume 8, Issue 4, April 2021.

6) T. Awoke, M. Rout, L. Mohanty, S. C. Satapathy, “Bitcoin Price Prediction

and Analysis Using Deep Learning Models,” ResearchGate.