LMAX Digital volumes continue to hold up well into the mid-week, though we expect volume will decline for the remainder of the week on account of the US Thanksgiving holiday break.

Total notional volume for Tuesday came in at $1.38 billion, 10% above 30-day average volume. Bitcoin volume came in at $821 million, 28% above 30-day average volume. Ether volume came in at $391 million, holding steady with 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,805 and average position size for ether at $7,530.

Volatility has been slowly picking up since finding a bottom in July. We’re now looking at average daily ranges in bitcoin and ether of $2,824 and $250 respectively.

We think we’re in a phase right now where a lot of the good has been priced into the market, leaving the greater risk over the short-term tilted to the downside.

Overall, the outlook remains highly constructive, but for now, we see risk for a period of greater corrective activity.

On Tuesday, we highlighted the primary reasons for the short-term bearish outlook.

These reasons include technical studies that appear to be rolling over, some lightening up in volume, regulatory headwinds, and a possible capitulation in US equities.

As far as breaking headlines go, there hasn’t been much out there to talk about that would be classified as market moving.

We would however once again highlight thinner trading conditions for the remainder of the week as the US shuts down for the Thanksgiving holiday.