LMAX Digital volume has come off quite a bit into the new week, though not inconsistent with the deterioration in broader market volume. Total notional volume for Monday came in at $1.2 billion, 46% below 30-day average volume.

Bitcoin volume came in at $507 million, off 54% from 30-day average volume. Meanwhile, the decline in Ether volume was less pronounced. Monday Ether volume came in at $462 million, down 28% from 30-day average volume.

Total notional volume at LMAX Digital over the past 30 days comes in at $66.98 billion. Average trading size for Bitcoin comes in at $9,329. Average trading size for Ether comes in at $5,975.

The average daily trading range for BTCUSD is $3,629. The average daily trading range for ETHUSD is $351.

We had warned about a period of correction and consolidation that had long been overdue, and this is exactly what we’re seeing into the end of Q2 2021. Activity on the Bitcoin network has fallen off to levels not seen since August of 2018 and market participants have felt comfortable assigning the weakness to any number of stories.

These stories include Elon Musk tweets, a crackdown on bitcoin mining in China, Goldman’s downbeat portfolio manager survey, and this latest unsubstantiated report of an FBI Bitcoin network hack.

But we don’t believe the pullback in price is anything more than a necessary price correction and have been hearing about significant demand from institutional accounts into the dip.

Some of the positive headlines in the space include El Salvador’s move to adopt Bitcoin, one of Wall Street’s largest market makers joining a blockchain project, and MicroStrategy announcing plans to buy more Bitcoin.

Technically speaking, we still won’t rule out the possibility for a deeper drop in the sessions ahead. A drop back below $30,000 will warn of deeper setbacks towards previous resistance turned support in the $20,000 area, in the form of the previous record high from 2017.

It will now take a break back through $47,000 to take the pressure off the downside and suggest the market is getting ready to start making its way back to fresh record highs.