Downside Risks Manifest

In last week’s letter, we outlined the various downside risks we were monitoring. Namely, with Bitcoin retesting the 2021 highs and profit-taking occurring on-chain, we pointed to a number of developments that could’ve prompted a more defensive posture. As such, we've seen sellers become dominant once-again, with Bitcoin and many altcoins falling below our risk levels this weekend.

Crypto markets are trading at a rather significant inflection point; they need to hold here, else we're in for a period of consolidation.