Trading Bitcoin with AI Prompts

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In this week's edition, I'll show you how I used GPT prompting to generate a few percentage points trading Bitcoin this week with technical analysis.

I used these prompts on Bitcoin's Thursday's rally around $102K and the prompts correctly predicted the price would drift upwards (currently sitting at ~$104K).

If you've been following AI model developments, you'll notice that the vision and image capabilities are making huge leaps forward the last several months .... particularly from OpenAI.

I was hesitant to rely on AI to do any sort of technical analysis prior to 2025, but I've noticed it's at a point now where it will produce analysis more objective than the influencers you see on X.

In my opinion GPT is great at explaining WHY a move happened (eg, short squeeze vs futures led rally vs spot led rally, etc.). If you can combine this with qualitative data points to consider (particularly since the market is so macro / Trump driven), this is a very useful tool in your trading arsenal.

I'll show you my exact prompts I used this week to analyze Bitcoin's rally up on Thursday.

Here's our gameplan:

1. Grab Bitcoin chart images from a custom TradingView dashboard that captures appropriate data points
2. Insert the detailed prompts to instruct GPT to analyze it properly

The Data:

I personally use Coinglass's TradingView screen for my own trading. It includes

• Price
• Futures volume and spot volume (explains how futures traders vs spot traders are positioning and which is driving the current move)
• Funding rates (explains how much leverage is in the system)
• Open interest (proxy for explaining if the current price move is driven by a long or short squeeze vs new fresh capital in the system)

I prefer the 30 minute vs 1H vs 4H vs 1D charts to get a general picture of what's happening on the short term and mid term as those are the primary strategies I trade.

​https://www.coinglass.com/tv/Binance_BTCUSDT​

Above is the link to the Coinglass charts and below are the screenshots I used for the prompts if you want to try to recreate it yourself.

The Prompt:

The Prompt (ChatGPT o3)

The Result

​https://chatgpt.com/share/681d3411-c8a4-8001-b5a0-26d293cdf0ee​

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Here's how ChatGPT explained the BTC charts:

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1 D (macro context)

• Structure: clear series of higher lows since early April, price pushing into the March swing-high zone (~103 500).
• Volume: moderate but expanding on every breakout candle, confirms fresh participation.
• Open interest: still ~79 K contracts, well below the 85 K March peak → market is less crowded than at last high.
• Funding rate: gently positive at +0.01 % → long bias present but nowhere near euphoric.
• CVD: both futures and spot still net-negative since March → multi-week rally is mainly perp-driven, spot buyers have not fully joined yet.

Read: bullish trend resumption, but sustainability relies on spot flow turning up.

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4 H (trend resolution)

• Breakout: clean close above the three-week range top at 98 000 followed by steady stair-step higher.
• Volume spike: uptick on each impulse leg, matches price expansion.
• Aggregated futures bid-ask delta: +324 ⇒ aggressive market-buying dominated the move.
• CVD futures turning up while spot stays red: points to a short-squeeze / leverage-led rally.
• Open interest: rose into the breakout then flushed ~2 % as shorts got liquidated, a healthy reset.

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1 H

• Momentum: strong impulsive candles, no meaningful pullback yet.
• Volume: 56 M contracts transacted on the latest thrust, highest in two weeks.
• Funding creeping higher: still only +0.01 % but rising; something to monitor.
• OI dip into the spike: confirms squeeze characteristics rather than new long build-up.

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30 min (immediate order-flow)

• Price action: vertical climb from 100 k to 102.8 k, minor flag forming at the top.
• Futures CVD: +42 M on the last push → persistent aggressor buying.
• Spot CVD: –28 k over the same window → discretionary or OTC sellers fading the move.
• Bid-ask delta: +427 reinforces that the move was buyer-initiated.
• OI: down ~3 K from the intraday high, signalling shorts blown out.

GPT's Final Verdict:

• Trend is bullish on every timeframe shown.
• Rally is leverage-led: futures buyers and short covering are propelling price while spot flow lags.
• Funding and OI are not yet overheated; the move can extend as long as funding stays < 0.03 % and OI rebuilds gradually.
• Risk: if spot CVD keeps diverging negative and funding accelerates, expect a swift pullback toward 100 k to rebalance.
• Confirmation for further upside: spot CVD flipping positive with OI climbing on stable price would signal real demand and open the door to 104–105 k+.

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This is much better analysis than what you get from X and helped me scalp a few percentage points of returns last few days. We indeed hit the $104k-$105k within 3 days of the analysis!

New Domain!

Separately, I spent the last week coding a new website for this newsletter. All emails in the future will be sent from dave@davewang.ai.

I'll be posting all my templates and resources at https://www.davewang.ai/ :)

If you made it this far, forward this to a friend who might find this helpful

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