Bitcoin Setting Up for a 50-Day SMA Rejection

The picture is not yet perfect, but we are close. The rejection at the Moving Average will be confirmed with a daily close under $230. The chances of this happening are pretty high and once it does, the price and confidence should drop quickly.

There is very little support under $230 (the $223 Fibonacci on the 120 min chart, $213 recent low, and the round number of $200) All of them are fairly weak and the moving averages are clearly still trending down.

This entire set up is negated with a close above the recent highs of $243 which would also put it above the 50-day SMA. Without getting too greedy, look to take profits around $200 once the $230 level is broken to the downside. Though the chances of dropping under $200 are also pretty high.

Good Luck Traders.

Tone Vays
Twitter: @Tone_LLT
Recent Article: bravenewcoin.com/news/weekly-bitcoin-analysis-may-4/