Fidelity Investments CEO: Crypto Industry Finally Starting to Grow – Price Analysis, 14 Dec 2020
Abigail Johnson, CEO of Fidelity Investments (one of the largest asset managers in the world with over $3 trillion in assets under management), stated in a recent interview for Barron's that the cryptocurrency industry is finally starting to grow. She also highlighted that their Bitcoin storage services had been incredibly successful because the demand for their service had turned out to be huge.
It is worth mentioning that Fidelity launched Bitcoin storage services in October 2019. Since then, they have experienced a substantial growth of their user base interested in Bitcoin and cryptocurrency. This increase is just another example that big institutional investors are entering the crypto market, thereby transforming cryptocurrencies into an important asset class.
Another proof that Bitcoin and cryptocurrency are becoming a noteworthy financial asset class is the recent statement by Morgan Stanley Investment Management's Chief Global Strategist and head of Emerging Markets, Ruchir Sharma. In a recently published article in the Financial Times, Sharma said that Bitcoin is going to replace, sooner or later, the US dollar as the world's leading reserve currency. The financial expert based his point of view on the continuation of the quantitative easing by the US Federal Reserve, which he compared with a limitless printing of dollars.
Although the market was quite volatile in the previous week, cryptocurrency prices managed to return to their starting levels. At the time of writing, according to Coin360.com, one Bitcoin costs €15,706.11 (-0.36%), one Ethereum – €483.14 (-1.00%), and one LINK – €10.46 (-2.99%):
Source: Coin360.com (Daily crypto market performance)
Now let's analyze the charts of the leading cryptocurrencies against the euro.
In the daily chart (1D), after the price correction, BTC/EUR has formed a sequence of potential trend reversal candlestick formations – a Hammer followed by a Bullish Engulfing:
Moreover, in the 4-hour chart (4H), BTC/EUR has bounced off the lower line (support line) of the Broadening Rising Wedge:
Therefore, there are enough bullish signals (prerequisites) for the resumption of an upward trend.
That's why we think BTC/EUR will try to test the recent local high, which is at the level of approximately €16,680, again. As closest support, we consider the lower line of the wedge or the level of around €15,200.
Last week, during the correction, the price of Ethereum dropped to the 30-day Moving Average (30 MA). Then the ETH/EUR found support, and a rebound has started:
Interestingly, in the 4-hour chart (4H), ETH/EUR has formed an Ascending Triangle – a trend continuation pattern:
As can be seen from the chart, the price of Ethereum received support at the lower line of the triangle. That's why we estimate that Ethereum will try to resume the price increase and reach the upper line (or the level of approximately €520) of the triangle as well. The lower line of the triangle will serve as a support line.
In the daily chart (1D), LINK/EUR continues to fluctuate within the Ascending channel (uptrend) we've been following recently:
It is highly probable that if the bullish sentiment returns to the crypto market, then LINK/EUR will move forward within the trajectory of the uptrend.
We want to point out that if in the 4-hour chart (4H), LINK/EUR overcomes the resistance it is facing currently, then the uptrend will resume:
According to the Technical Analysis theory, if LINK/EUR breaks through the resistance line, then some traders will open long positions with a stop-loss below the lower line of the channel.
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