LMAX Digital volumes picked up on Tuesday after a slow start to the week. Total notional volume for Tuesday came in at $603 million, just 3% off 30-day average volume.

Bitcoin volume printed $416 million on Tuesday, 1% above 30-day average volume. Ether volume came in at $143 million, 2% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,072 and average position size for ether at 2,598.

There have also been signs of a pickup in volatility in recent days. We’re now looking at average daily ranges in bitcoin and ether of $1,876 and $142 respectively.

Things have slowed down a bit this week, with the market stabilizing in the aftermath of the latest intense fallout. But we are concerned the stabilization is more a function of consolidation ahead of deeper setbacks than a legitimate recovery.

Stocks are already back under pressure into Wednesday, and all of the worry around higher inflation and higher rates has not gone away. Investors will continue to keep a close eye on inflation reads, as this will likely be what drives the direction in markets for the foreseeable future.

Interestingly enough, despite the selloff in bitcoin, more than half of bitcoin addresses are still in a profit, something that could actually be concerning given previous trends. Evidence of bottoms in previous pullbacks happened when more than half of the bitcoin addresses were not in profit.

In March of 2020 profitable addresses were at 41% before recovery, and in 2018, we saw profitable addresses just below 50% before recovery. It looks like profitable addresses currently stand at about 56%.

All of this in conjunction with an equity market that still looks like it has more room to fall and a technical picture that aligns with this view, suggests we could indeed be at risk of more weakness in crypto markets before finally getting that anticipated bullish reversal.