• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Bitcoin

Bitcoin Tumbles Towards Washout as Crypto Enters 'Get Me Out' Phase

Keep your seat belts low and tight, here's where we may be headed.
By BRUCE KAMICH
Jun 30, 2022 | 09:23 AM EDT

In our June 13 review of bitcoin futures we gave a sober outlook for prices including a price target: "In this daily Point and Figure chart of bitcoin, below, we can see the breakdown and a price target of $15,750." We concluded that, "Equity traders have been looking for 'capitulation' in the stock market for weeks. Maybe the capitulation is being played out in bitcoin."

Let's check the charts again.

In this daily bar chart of the continuous bitcoin futures contract, below, we can see that prices topped out in October/November. Prices have tumbled lower but have been interrupted by periodic rallies. The rally from late January to late March was the longest. The counter-trend rallies/corrections have become shorter in duration and that is a sign to me that the bear has taken control of the move. The slope of the 50-day moving average line and the 200-day line are negative.

The On-Balance-Volume (OBV) line has been weakening since late October as traders of bitcoin have been more aggressive with heavier trading volume on days when the cryptocurrency has closed lower. The 12-day price momentum study shows equal lows in May and June even though prices made lower lows. This is a bullish divergence but it may not be significant enough to generate a recovery rally.

 
In this weekly Japanese candlestick chart of the continuous bitcoin futures contract, below, we see a bearish picture. Prices are breaking down from a major top formation. Prices are below the declining 40-week moving average line.
 
The weekly OBV line and the MACD oscillator are bearish. Chart readers will have to look back to the $10,000 area now for possible support.
 
 
In this daily Point and Figure chart of bitcoin, below, we can see a downside price target in the $16,001 area.
 
 
In this weekly Point and Figure chart of bitcoin, below, a target of $2,932 is displayed. Don't shoot the messenger.
 
 

Bottom-Line Strategy

My first experience with capitulation came in 1975 when a business executive committed suicide across the street when he jumped from the Pan Am Building. Capitulation can also be marked by Chapter 11 filings, put buying and investors dumping their positions with no regard to price -- get me out! The news flow from the "crypto world" has become very negative and it has entered that "get me out" phase, in my opinion. Keep your seat belts low and tight around your waist.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Bitcoin | Investing | Technical Analysis | Trading | Fintech | Cryptocurrency

More from Bitcoin

Is Bitcoin's Decline Foreshadowing Further Nasdaq Weakness?

Bruce Kamich
Sep 9, 2023 12:15 PM EDT

Technical analysts often look for stocks or indexes for subtle hints on ones leading the pack.

FSI Weekly Roadmap: Tough September Start, but Broader Outlook Is Constructive

Tom Lee and the FSI Team
Sep 9, 2023 8:15 AM EDT

Potentially positive catalysts are expected next week, notably the latest CPI numbers. Plus our latest view on Apple.

Austere August, Not-So-Grand Evergrande, China's Debt Dilemma, Palo Alto Oddity

Stephen Guilfoyle
Aug 18, 2023 7:12 AM EDT

Palo Alto Networks has scheduled its earnings release for after the market's close here on Friday, which is highly unusual and raises a red flag.

FS Insight Weekly Roadmap

Tom Lee and the FSI Team
Jul 28, 2023 7:35 PM EDT

Markets climb after FOMC week and strong economic data.

Has Coinbase Finally Gotten Its Act Together?

Bruce Kamich
Jul 5, 2023 12:42 PM EDT

Here's the price area where traders could go long.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • 09:07 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Most Common and Costly Mistake in Investing
  • 10:23 AM EDT PETER TCHIR

    August CPI, Sticky Inflation and the Fed

    CPI, in grand scheme of things, was a non-event......
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login