LMAX Digital volumes got off to a nice start to the week. Total notional volume for Monday came in at $315 million, 11% above 30-day average volume.

Bitcoin volume printed $169 million on Monday, 8% above 30-day average volume. Ether volume came in at $93 million, 36% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,925 and average position size for ether at 2,491.

Volatility is finally showing signs of turning up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $671 and $60 respectively.

US equities continue to extend gains and this has proven to be supportive of crypto given the correlations with risk sentiment.

What’s interesting about the price action, and perhaps somewhat concerning, is that US yields are also moving up. Bottom line is that it feels like something has got to give.

For the moment, bitcoin and ether aren’t ready to relent, despite severely overbought technical readings. The daily RSI reads for bitcoin is up over 85 into Tuesday.

The next big level for bitcoin comes in the form of the August 2022 high up at $25,220. While we believe a healthy correction is well overdue, it’s possible it doesn’t come until this level is tested.

The important short-term level of support to watch right now is bitcoin’s $22,300 low from January 22. A break back below this level would open the door for the possibility of the start to a more significant correction.