LMAX Digital volumes cooled off overall on Wednesday after putting a solid showing on Monday and Tuesday. Total notional volume for Wednesday came in at $302 million, 24% below 30-day average volume.

Bitcoin volume printed $95 million, 49% below 30-day average volume. Ether volume was however solid, coming in at $175 million, 10% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,425 and average position size for ether at $4,238.

Market volatility has been trending lower since March but is finally show some signs of wanting to bottom out. We’re looking at average daily ranges in bitcoin and ether of $1,926 and $142 respectively.

Earlier this week, we highlighted the possibility for a deeper correction if bitcoin were to establish below $65k.

But for the time being, dips have been exceptionally well supported, keeping the immediate focus on the topside.

More often than not, when sentiment is leaning aggressively in one direction, the market will surprise and move the opposite way.

Lately, there has been an overwhelming sentiment bitcoin could be in for a much bigger correction, which could be the contrarian indicator driving this latest bounce.

Nevertheless, we’re still in a kind of no-man’s-land, with the market confined to a consolidation since pushing to a fresh record high in March.

This suggests caution is the best strategy until we see a clearer directional move.

Fundamentally, the market continues to price more rate cuts than the Fed, which has weighed on Dollar yield differentials, helping to inspire demand for currencies.

This has also helped to keep risk sentiment propped up, which has translated to record high US equities.