LMAX Digital volumes cooled off on Tuesday following the heavy weekend and Monday action. Total notional volume for Tuesday came in at $681 million, 8% below 30-day average volume.

Bitcoin volume printed $404 million on Tuesday, 1% below 30-day average volume. Ether volume came in at $183 million, 19% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,450 and average position size for ether at $4,792.

Market volatility is consolidating off peak levels from Mid-March. We’re looking at average daily ranges in bitcoin and ether of $3,555 and $216 respectively.

We have a hard time seeing bitcoin trading much higher on the halving given the event has been well anticipated and therefore already well priced into the market.

At the moment, we’re looking at a market happy to pause for some consolidation after pushing to record highs on the back of the SEC ETF approvals and in the lead up to the halving event.

This has us looking ahead to the next drivers of price action in 2024. And as far as these go, we see bitcoin spot ETF flows, developments around the SEC review of ETH spot ETFs, and updates from the world of traditional markets and Fed policy as the primary drivers of price action.

Technically speaking, the key level to pay attention to right now is bitcoin $59k. If bitcoin can hold above this level, it keeps the direct focus on that next push to a fresh record high and towards $100k.

If on the other hand we see more downside pressure that translates to a breakdown below $59k, this will delay the short-term bullish outlook and open the door for a more meaningful correction into the $45-50k area.

It’s worth noting, the latest blockchain data shows large holders of bitcoin holding off on increasing exposure into the current dip, which suggests we could still see some more weakness or consolidation before bitcoin is ready to turn back up.