LMAX Digital volumes improved from Monday levels but were still light on Tuesday amidst tighter trading ranges. Total notional volume for Tuesday came in at $319 million, 34% below 30-day average volume.

Bitcoin volume printed $184 million on Tuesday, 23% below 30-day average volume. Ether volume came in at $43 million, 56% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,614 and average position size for ether at $1,699.

Bitcoin volatility continues to cool off from peak levels earlier this month, while ETH volatility remains relatively contained. We’re looking at average daily ranges in bitcoin and ether of $4,089 and $147 respectively.

Price action has been eerily quiet over the past several sessions. Indeed, bitcoin has recovered out from recent lows. At the same time, the recovery has been contained, with the market confined to a tight trading range.

We believe there is still plenty of uncertainty around whether or not we’ve seen the extent of the pullback. Ultimately, most crypto market participants are confident we will soon see the next big push higher to fresh record highs. However, there is a fear there still could be one more dump before this plays out.

And so, this is how the indecisive, tight trade can be reconciled. Fundamentally, crypto assets are for the time being sensitive to sentiment in traditional markets. Worry around tariffs, global trade, and geopolitical risk are all playing into the more risk averse investor pulse, which has trickled through to crypto assets.

Technically speaking, many traders are aware of the fact that market pullbacks like to test previous resistance levels before trying to establish that next major higher low in an uptrend. The fact that the recent bitcoin pullback stalled out ahead of that previous resistance in the $74k area, could be keeping bulls sidelined as well.

There are some stops built up just over $85,500. A clear break back above this level would take more pressure off the downside and embolden the bullish outlook.

Looking ahead, all eyes will be on today’s Fed policy decision. As far as this goes, anything that leans more to the accommodative side will likely serve to fuel demand for crypto assets, while anything leaning more hawkish could weigh.