We moved to a negative stance in Bitcoin ( BTC ) just in time.

Right now, we see Bitcoin ( BTC ) resting near a point in June, which was the takeoff point for the final leg of the rally. While this level seems to provide helpful visual support, we don't think it qualifies as a good horizontal support point. Realistically, the next meaningful horizontal support point comes in at 6000. The fact there is horizontal support at 6000 is a good thing because the next good diagonal support comes in at 4000.

While everybody may be engaging in coming up with ridiculously low downside targets for Bitcoin ( BTC ), we prefer a different approach. With stocks near all-time highs and more rate cuts coming, there is no reason for equities portfolio managers to own Bitcoin ( BTC ) into the end of the year. So, the outlook for Bitcoin ( BTC ) is negative as long as the outlook for stocks is positive.

Bottom Line: More than likely traditional portfolio managers are going to sell out their Bitcoin ( BTC ) and take their losses. This sets up at least one more leg down.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.