Many in the cryptocurrency community thought that Bitcoin bottomed at $6,000, as it held over that price level for weeks on end. However, Bitcoin dropped under $5,800 on the weekend, leading some to believe that Bitcoin’s price could move even lower. Brian Kelly, leading cryptocurrency trader and analyst on CNBC, drew attention to four reasons why he believes the most popular cryptocurrency has found a price bottom.
Bullish Rebound Off $5779, The Cost To Mine One Bitcoin
Kelly opened up his segment by acknowledging that Bitcoin had reached a yearly low of approximately $5,779. Although new lows would traditionally be seen as a negative sign, the CNBC trader noted that the quick rebound off $5,779 is indicative of Bitcoin finding a price bottom. Kelly elaborated on this point, saying:
“Over the weekend we saw Bitcoin hit new lows, I think we saw Bitcoin hit $5779. Then within about 10 or 15 minutes you have a huge ramp up, 100 to 200 points. This is typically the action that Bitcoin has shown at bottoms.”
Brian Kelly also mentioned that the average mining cost of one BTC sits around $5,900, indicating a potential for strong support over that level. Tom Lee, co-founder of analysis firm Fundstrat, also believes that the mining costs are a vital level for the most prominent cryptocurrency to hold.
In an appearance on CNBC, Lee noted that prices for Bitcoin have historically held above mining costs, especially in the cryptocurrency bear market of 2014.
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