LMAX Digital volumes got off to a light start this week. Total notional volume for Monday came in at $363 million, 26% below 30-day average volume.

Bitcoin volume printed $150 million on Monday, 35% below 30-day average volume. Ether volume came in at $71 million, 24% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,347 and average position size for ether at $1,727.

Market volatility has cooled off considerably since peaking out earlier this month, but there are signs of volatility starting to pick back up again.

We’re looking at average daily ranges in bitcoin and ether of $3,305 and $184 respectively.

Up until now, though we have seen weakness on the periphery within the crypto market, bitcoin has managed to hold up well, consolidating off the January record high.

Bitcoin’s ability to hold up has offered itself as a solid reassurance for other struggling cryptocurrencies. This makes today’s breakdown below critical range support at $89k an important development to keep an eye on.

The combination of fallout within the crypto space around memecoin scandals, coupled with serious macro headwinds, has been a combination that bitcoin has finally been unable to ignore.

While we aren’t as concerned with any pullbacks in price from memecoin disruptions, the more hawkish Federal Reserve outlook at a time when economic data has been slumping and inflation is trending back up is a concern.

The market has priced in maximum bullishness around a crypto friendly US administration, which also leaves us in a place where the balance of risk has been tilted more to the downside short of fresh catalysts on this front.

As per today’s technical insights, the door could now be open for a deeper pullback in the price of bitcoin towards major previous resistance turned support around $74k.

Any additional weakness below this level should however be exceptionally well supported as medium and longer-term players look to swoop in and take advantage of an extreme discount in price.