LMAX Digital volumes improved on Tuesday from a day earlier, pushing back up towards 30-day average volumes.

Total notional volume for Tuesday came in at $183 million, 6% below 30-day average volume.

Bitcoin volume printed $109 million on Tuesday, 2% below 30-day average volume. Ether volume came in at $52 million, 1% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,078 and average position size for ether at $3,103.

Volatility is holding up after recovering from cycle lows last week. We’re looking at average daily ranges in bitcoin and ether of $685 and $50 respectively.

Bitcoin and ether have settled back into consolidation following last week’s intense round of declines.

A lot of this consolidation can be attributed to a market waiting for more clarity from within, with respect to court decisions and SEC rulings, and a market waiting for more clarity on a macro level, with respect to the outlook for global rates and monetary policy.

And while we wait for this clarity, the focus shifts back towards the technical picture. Interestingly enough, last week’s sharp decline in the price of bitcoin has led to the daily RSI reading dropping deep into oversold territory.

The reliable momentum indicator is tracking at its lowest levels since the coronavirus crash in March 2020. The good news here is that when readings sink to such depressed levels, it’s often a warning sign of some form of a bottom and big bounce.

All of this coincides with a bitcoin price that has also come back into major support in the $25k area, a development which further supports the idea that additional setbacks from current levels should be limited.

There has also been a lot of attention around the fact that out of the 2.56 million bitcoin held by short-term holders, only 300k bitcoin is still in profit.

This means the overall share of the bitcoin supply in the hands of short-term holders is at multi-year lows, which could be reflective of yet another bottom signal.

A daily close back above $27k will help build the case for a potential bottom and certainly take the immediate pressure off the downside.