Write a brief summary on trends you have observed in each of the yearly graphs regarding average price.
FinTech Innovation Bitcoin
Assignment 2: Bitcoin
Dataset for assignment
Submission Instructions: Zip file with the following: One python file with the code labeled A6.py. Another file labeled A6 – 2.pdf which includes the screenshots for the 5 graphs in Question 3, the one graph in Question 4, as well as the written responses for 5,6, and 7.
Hint: The easiest way to complete this assignment is to convert each csv file into pandas dataframes.
1) The first task is to append BTC-2017min.csv, BTC-2018min.csv, BTC-2019min.csv, BTC-2020min.csv, and BTC-2021min.csv. Make sure you do this in pandas/using python.
a) The data is currently sorted by descending date in each file. What this means is that 12/31/17 is at the top of the BTC-2017min.csv file while 1/1/17 is at the bottom. First, sort each file by date ascending so 1/1/20XX is at the top and 12/31/20XX is at the bottom for each file.
2) After lining up the dates, create a new column called “AVERAGE” in the pandas dataframe- average of high and low columns. Hint: Format would look similar to this: df[ ‘average_1_2’] = df[[ ‘column 1’, ‘column 2’’ ]].mean(axis= 1). Make sure to label graph axes (average price on y and dates on x axis)
3) Make a line plot for each of the years based on the average column. (X axis should be the dates, y-axis should be the average column). There should be 5 of these graphs- to create smaller data frames based on the year. (EX: year1 dataframe contains data from 1/1/17-12/31/17, year2 dataframe contains data from 1/1/18-12/31/18).
4) Then, combine all the data frames and line up the dates so that 12/31/17 is immediately followed by 1/1/18, 12/31/18 is immediately followed by 1/1/19, etc. In other words, the data should be chronologically listed by date from 2017-2021. Essentially, make a graph but instead of using the “AVERAGE” column, refer to the “CLOSING price.”
5) Write a brief summary on trends you have observed in each of the yearly graphs regarding average price
6) What did you notice in the closing price graph across all years? Explain in one paragraph.
7) (Discussion) Based on class lectures and this assignment, what is your prediction of the bitcoin market? Are you bullish or bearish on bitcoin and why?