The price of bitcoin has plummeted over the past few months. Despite the gloomy price of bitcoin, the world’s largest cryptocurrency remains more popular than Beyoncé – at least according to one cryptocurrency expert.
Bitcoin expert Brian Kelly, founder of Brian Kelly Capital, conducted an interview with CNBC earlier today.
Kelly was asked about the future of bitcoin. As the price of bitcoin plummets, some are worried about the future of the cryptocurrency. Beyond price, there are other concerns as well – like the fact that the number of bitcoin searches on Google has dropped 75% since 2017.
None of this, however, worries Kelly, who explained that bitcoin is still more popular than Beyoncé:
“It’s probably good that we’ve got some of the speculative froth out of here but there’s still more Google searches than Beyoncé in bitcoin,” explained Kelly on CNBC’s “Futures Now”.
Kelly isn’t exaggerating: the number of searches for the keyword “bitcoin” have surpassed the number of searches for “Beyoncé” throughout most of 2018. Aside from a brief spike in April during Beyoncé’s renowned Coachella performance, bitcoin has dominated Queen Bey for the first six months of 2018 according to Google Trends.
The price of bitcoin, unfortunately, hasn’t had such a good year. On Tuesday, the price of bitcoin retreated to a low below $7,000 for the first time since April 2018.
Kelly is watching the market closely to see what it does next, and claims he’s looking for several crucial walls to predict the next movement:
“What I’m really looking for is some kind of movement, a bounce off $6,500. We don’t really have the volume, there aren’t a lot of catalysts that I can see coming up in the very short term so I’m almost looking for this market to prove it to me.”
The Importance Of Maintaining A Bitcoin Price Above $6,500
Why is $6,500 such an important number? It’s not an arbitrary figure. Kelly described how the $6,500 level corresponds with “fully depreciated mining costs.”
For example, a bitcoin miner who buys a new machine every 18 months will increase the costs of mining to around $5,900 or $6,000, according to Kelly’s calculations.
“That marks $6,500 as a fundamental mining support level.”
Kelly claims bitcoin hasn’t needed to test the $6,500 support level during recent market movements. Instead, in the very short term, bitcoin has shown resistance at the $6,800 level:
“On a very short term, $6,800 seems like a pivot to me so in this market, as a trader, I’d much rather be buying that momentum on a break through $6,800. Above $6,800, I think you can buy it as a momentum-type of trade.”
Kelly’s prediction, however, was dated within hours of his interview. At the time of writing, bitcoin has continued to sink. Over the last few hours, the price of bitcoin has hovered between $6,500 and $6,600.