The digital currency market is still in the “crypto winter” phased which it was tagged with late last year. Recently, the CEO of Civic said that the crypto winter could turn to crypto nuclear if Bitcoin (BTC) continues to plunge and trade below the $3,000 level. Bitcoin (BTC) – which is the largest digital currency in the market by market cap – has been lacking bullish momentum to help push its value higher.
Bitcoin (BTC), as well as other digital currencies in the market, usually experience an upsurge in their values whenever there is a partnership, development, or other good news around them. Nevertheless, Bitcoin (BTC) has lacked that over the past year, and the few bullish tractions that have come its way are not enough to lift its value higher.
Will the Bitcoin (BTC) Custody Service of Fidelity Favor the Crypto Market?
The value of Bitcoin (BTC) on Wednesday surged as much as 2.5 percent following the reports that Fidelity plans to launch its Bitcoin (BTC) custody service in March. Earlier today, the digital currency market opened at a lower rate at $3,338 during the Asian trading session, while it was seeing a downward trend in a descending channel formation.
The positive sentiment of the digital currency started after a major capital management company – Fidelity Investments – announced the launch date of its much-anticipated custody service. According to the announcement, the firm said that it would launch its Bitcoin (BTC) custody service in the first quarter of this year, March to be precise.
The entrance of Fidelity Investment into the Bitcoin (BTC) market is bullish for speculators. Digital currency investors and traders believe that a renowned custody service would attract institutional investments. A custody service is aimed at minimizing the risks regarding digital asset thefts. So far, major investors and investment companies have excused themselves from investing more money in blockchain and digital currency startups. Fidelity Investment has a proven track record, and the firm is likely to fill the gap as an asset manager.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $3,418 after an increase of less than one percent over the past twenty-four hours. The current market cap of the digital currency is $60.23 billion and its trading volume over the past twenty-four hours is $5.05 billion.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has been trading around the $3,500 level for some weeks now. The digital currency – which recently tested a new monthly low – surged higher after the announcement of Fidelity Investment. However, the digital currency is now down to the $3,400 level, as it still faces a strong hurdle on the upside. Nevertheless, the digital currency is trending over a small, newly-formed ascending trendline, which now serves as a support for the next downward movement.
Together, the hurdle at $3,500 and the ascending trendline are creating a rising triangle pattern. If the digital currency breaks over the $3,500 level, it will pave the way for more gains towards the 200-day moving average curve. At the same time, there will be a stop loss order below the position.
If a pullback scenario occurs, the value of the digital currency might break below the ascending trendline formation. If this happens, it would pave the way for a short position towards $3,337 while maintaining a stop loss order over the local swing high.