Google searches for bitcoin have plummeted 75 percent this year, leading some to worry investors are losing interest in the buzzy cryptocurrency.
Not bitcoin expert Brian Kelly.
“It’s probably good that we’ve got some of the speculative froth out of here but there’s still more Google searches than Beyonce in bitcoin,” said Kelly, founder and CEO of Brian Kelly Capital, Tuesday on CNBC’s “Futures Now.”
Searches for the keyword “bitcoin” have steadily surpassed Beyonce this year, outside of a brief spike in April during the superstar’s Coachella music festival performance, according to Google Trends.
Bitcoin prices have had a rough week, though, pulling below $7,000 on Sunday to trade at levels not seen since April. Kelly said there are a few critical levels to watch in bitcoin to determine where it heads next.
“What I’m really looking for is some kind of movement, a bounce off $6,500,” he said. “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 $6,500 level, said Kelly, corresponds with “fully depreciated mining costs.” If a bitcoin miner needs to buy a new machine almost every 18 months, the costs of mining increase to around $5,900 to $6,000, according to his calculations. That marks $6,500 as a fundamental mining support level.
While $6,500 has acted as a measure of support for bitcoin, Kelly said $6,800 has acted as resistance.
“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,” he said. “Above $6,800, I think you can buy it as a momentum-type of trade.”
Bitcoin fell below $6,800 on Tuesday. It has dropped roughly 10 percent since Sunday when South Korean crypto exchange Coinrail said it had been hacked.