We recently saw Overstock.com $OSTK shares rally on back of earnings and news of a major investment in its subsidiary tZero, which is a blockchain play. Well, crypto markets continue to bleed, and it should not surprise that the hype caused by this investment has turned sour. The price action in the past 3 sessions reflect the markets aversion for anything crypto-related these days.OSTK Daily Chart(click to enlarge)False Breakout:- We had a false bearish breakout in June, which suggested a bullish breakout.- We even had the market confirm in August as it pivoted above the middle of the range. - Finally, the breakout from earnings appeared to be extra confirmation of the bullish outlook.- However, the rejection from the 200-day simple moving average, and previous support/resistance pivot at $48, was a critical revelation that bulls were NOT in charge.Bearish Outlook:- As price retreated sharply, the break below $36 confirmed that bears are in charge. - This suggests price will break below that June and 2018 low around $28.- Looking at the weekly chart, we can see that a simple regression back to the 200-week SMA would land OSTK around 25.- Indeed, we should anticipate support if price approaches the $24-$25 area. - Below that, the next critical support will be around $20. The weekly RSI will probably reach the oversold level of 30 if price gets down to $20. - I wouldn't mind having some dry powder ready in case OSTK does reach down to $20, because I think there will be at least a chance to bounce back to $24-$25 if not $30 in a subsequent period of consolidation. OSTK Weekly Chart(click to enlarge)