LMAX Digital volumes cooled off a bit on Wednesday. Total notional volume for Wednesday came in at $255 million, 11% below 30-day average volume.

Bitcoin volume printed $161 million on Wednesday, 8% below 30-day average volume. Ether volume came in at $61 million, 9% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,870 and average position size for ether at $2,976.

Market volatility continues to trend lower since peaking in August. Bitcoin volatility is at its lowest level since June, while ETH volatility is at its lowest since February.

We’re looking at average daily ranges in bitcoin and ether of $1,901 and $101 respectively.

Wednesday’s market setbacks have been well supported and dips continue to be quite shallow. At the moment, there is some short-term support in the price of bitcoin in the form of the October low at $59,825.

This will be the key level to watch below over the coming sessions. Should we hold above, it will keep the focus on the topside for that next big push higher towards a retest an break of the record high from earlier this year.

Fundamentally, it’s possible this latest minor bout of weakness has come from another wave of broad based US Dollar demand after the Fed Minutes revealed some members had be looking for a more gradual rate cutting path.

Ultimately however, bitcoin hasn’t really gone anywhere at all and we remain confined to a bullish consolidation at a time of year when seasonal trends are pointing to the topside.

The other week, bitcoin poked above $65,000 for a moment and we believe this is an important short-term level to pay attention to. A clear break and close above this level will likely be the catalyst for that next big move.

As far as today goes, we fully expect there to be volatility around the US inflation reading. Should the number come out on the softer side, it will likely fuel a fresh wave of demand for bitcoin and broader crypto assets by extension.