Bitcoin (BTC/USD) Technical Analysis for Feb 27, 2018

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Bitcoin could be gearing up for another leg higher as it is forming a larger inverse head and shoulders pattern. Price has yet to complete the right shoulder, though, and break past the neckline around $12,000.

This chart pattern spans around $5,000 in height so the resulting uptrend could be of the same height. The 100 SMA is just starting to cross above the longer-term 200 SMA to signal that bullish momentum is picking up. These moving averages are holding as dynamic support levels as well.

Stochastic is moving up to confirm that buyers have the upper hand, but this oscillator is already dipping into overbought territory to reflect exhaustion. RSI is also on the move north and has more room to climb, so buying pressure could stay in place for a bit longer.

News of cross-border currency exchange platform Circle acquiring major cryptocurrency exchange Poloniex has been positive news for the industry, as it could expand the reach and capabilities of bitcoin. This could also mark the start of consolidation among traditional exchanges and crypto platforms, according to Erik Voorhees:

“I think this is a really good sign for the industry. It shows that a lot of companies are going to start consolidating and that will bring [out] the best talent. I think you’re going to see a lot of that in 2018. These companies have so much capital at this point.”

According the Fortune, the deal was around $400 million but this was not confirmed by Circle. In an interview with CNBC, Circle co-founder and CEO Jeremy Allaire said:

“These markets are still in their infancy but they hold enormous promise. There’s going to be a huge amount of value creation.”

Analysts predict that the next step would be for one of the big cryptocurrency companies to announce an IPO or go public, which would lead to more investment flows in the industry.

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