LMAX Digital volumes came in strong on Wednesday, following up a robust Tuesday performance. Total notional volume for Wednesday came in at $571 million, 47% above 30-day average volume.

Bitcoin volume printed $372 million on Wednesday, 50% above 30-day average volume. Ether volume came in at $140 million, 47% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,844 and average position size for ether at $3,100.

Volatility continues to trend higher after bottoming out at multi-month lows in August. We’re looking at average daily ranges in bitcoin and ether of $1,174 and $73 respectively.

Tuesday’s setback in the price of bitcoin was happily swallowed up on Wednesday, with the market racing back to the topside and once again considering a push to fresh yearly highs.

Technically speaking, the outlook is constructive and the focus is on a continuation of this bullish extension towards the next measured move target at $40,000.

As far as support goes, any setbacks from current levels are expected to be exceptionally well support on dips towards $32,000, which acts as a formidable previous resistance turned support zone.

There had been some hope we could hear news out from the SEC as soon as this week around an approval of the bitcoin ETFs. But as of yet, no such luck and this has perhaps capped enthusiasm somewhat into the latter half of the week.

Another interesting update this week, which we have talked about at length, is the disconnect between bitcoin performance and top tier US economic data.

Our key point here is that whatever the direction inflation takes (or any other major data), there is an argument to be buying bitcoin.

We see plenty of appetite for bitcoin as an emerging asset, and we see plenty of appetite for bitcoin as a flight to safety, store of value asset.