LMAX Digital volume got off to a slow start this week. Total notional volume for Monday came in at just $395 million, 48% below 30-day average volume.

Bitcoin volume printed $263 million on Monday, 33% below 30-day average volume. Ether volume came in at $88 million, 67% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,958 and average position size for ether at 5,350.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,159 and $198 respectively.

We’ve seen an impressive wave of demand for crypto assets in recent sessions. The price action has been especially impressive considering the fact that it comes at a time when stocks have been under pressure.

Of course, we have been highlighting the fact that we do expect the ‘stocks off-crypto off’ correlation to break down as longer-term players step in to buy crypto assets at massively discounted prices on what they see as a very bright outlook for this space.

Still, we’re not convinced we’re there just yet. Stocks have indeed come under pressure of late, but it’s been more a kind of consolidation than anything else. So no reason to sound the alarms, which has left crypto in a good position to focus back on the compelling crypto specific fundamentals.

And technically speaking, while we have seen some alleviation of downside pressure in the aftermath of Monday’s bullish price action, we’re far from out of the woods, with the major correction off the record high from November 2021, still very much in play.

As per our technical insights today, we would really need to see bitcoin establishing back above $52,000 to suggest we are truly back to bullish trending price action and a push towards a retest of the record high. Until then, risk remains for another healthy setback.