LMAX Digital volumes got off to a strong start this week. Total notional volume for Monday came in at $1.64 billion, 172% above 30-day average volume.

Bitcoin volume printed $1.2 billion on Monday, 302% above 30-day average volume. Ether volume came in at $96 million, 27% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,958 and average position size for ether at $2,626.

Market volatility remains elevated but has been cooling off since peaking out the other week. We’re looking at average daily ranges in bitcoin and ether of $4,196 and $183 respectively.

In our Monday update we highlighted the importance of being able to take a step back amidst some intense short-term price action.

Indeed, the Monday pullback was a head turner. At the same time, as per our technical insights, when looking at the daily chart, there is nothing going on with bitcoin price action other than consolidation within a well defined uptrend.

As a reminder, bitcoin had pushed to a fresh record high the other week and is well within striking distance of another record high. The recent push to a fresh record high has also opened the door for the next major upside extension towards $130k.

The key level of support to pay attention to is the 2025 low which we saw on January 13. That low comes in at around $89k. Only a break and daily close below this level would delay the constructive outlook for bitcoin.

If we do see bitcoin put in a daily close below $89k, it would suggest the market could be wanting to see a bigger correction before resuming the medium and longer-term uptrend.

This correction could take the market back down into major previous resistance turned support in the $70-75k area, at which point there would be strong demand and a high probability for the formation of the next major higher low ahead of a bullish continuation.

The bottom line right now is that the uptrend is intact on a short, medium, and longer-term basis. If the market breaks down below $89k, it will only compromise the short-term constructive outlook and suggest there is room for a deeper pullback, before the short-term outlook turns bullish again and realigns with the medium and longer-term uptrends.