Watching From the Grandstand

In last Monday's report, we pointed out a handful of bearish developments but restated our neutral outlook on the crypto market.

We noted that there was demand coming from spot, while futures were still in the process of selling.

This continues to be the key theme to monitor; selling spot no longer appears to be the primary way savvy and large investors are going to cash.

Rather, they're doing it through shorting calendar futures driving down Bitcoin's term structure.

Since then, we've seen Bitcoin lose our risk level of 41,000 and are positioned heavily in cash.

We're anticipating a longer period of sideways price action, and this is a tape conducive neither to trading nor to establishing aggressive long positions.