LMAX Digital volumes got off to a decent start this week. Total notional volume for Monday came in at $648 million, 5% above 30-day average volume.

Bitcoin volume printed $401 million, 17% above 30-day average volume. Ether volume came in at $137 million, 4% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,557 and average position size for ether at $3,085.

Bitcoin and ETH volatility remains elevated just off recent multi-month highs. We’re looking at average daily ranges in bitcoin and ether of $4,092 and $225 respectively.

The crypto market is clearly feeling the pressure right now. Bitcoin has erased all of its gains for the year and slipped into negative territory year-to-date (-4.40% YTD), with ETH following suit and sinking even deeper into the red (-10.74% YTD).

Earlier this week, we highlighted the importance of the $93K level on the weekly Ichimoku Cloud chart. We said a break below that threshold would shift the trend from bullish to neutral.

We’ve now dipped below $93K, making the next market moves critical. However, based on the cloud structure, a confirmed downtrend would only be established on a sustained break below $80K.

History has shown us that while Bitcoin’s pullbacks can be sharp, they often present compelling buying opportunities. This is still a maturing asset class, and dips have consistently offered attractive entry points – especially now that Bitcoin is finally gaining broader acceptance.

With that in mind, we expect strong pockets of demand to emerge around current levels, and certainly before any move toward $80K.

At the moment, the primary headwind for crypto appears to be macro-driven rather than sector-specific. U.S. equities have started to pull back from record highs, and concerns are rising that this reversal could deepen, particularly as recent Fed communications have leaned less dovish.

That said, equity markets have repeatedly found support during pullbacks over the years, and the Fed has a well-documented tendency to revert toward accommodation, especially when markets begin pricing in more restrictive policy.

From a technical angle, both Bitcoin and ETH are becoming increasingly appealing on this dip. Daily charts show both nearing oversold conditions and approaching key support areas that could serve as a springboard for renewed upside.

Earlier in the year, market participants were eager for a chance to buy Bitcoin and ETH at these levels. Now that we’re here, we expect many of those sidelined buyers to re-engage and help establish the next meaningful higher low – setting the stage for another potential leg higher into year end.