LMAX Digital volume leveled off in Wednesday trade following a solid start to the week. Total notional volume for Wednesday came in at $878 million, 4% above 30-day average volume.

Bitcoin volume printed $502 million on Wednesday, 8% above 30-day average volume. Ether volume came in at $280 million, 6% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,175 and average position size for ether at 6,681.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,424 and $211 respectively.

Crypto has cared less about correlations with traditional market sentiment in recent sessions. We’ve seen bitcoin and eth rally back to the topside amidst a deterioration in risk appetite on account of fallout from the Russia-Ukraine war. This lends itself to the longer-term value proposition that crypto is a legitimate portfolio diversification asset class.

Technically speaking, the rally has stalled out into critical resistance. We’re looking at the bitcoin February high as a proxy, and as per our analysis, we’re going to need to see a break above that high to truly take the pressure off the downside and suggest we could be getting ready to finally turn back up again.

Inability to clear the February high will keep the pressure on the downside and open the door to the possibility for another drop in price back towards the yearly low and below. We believe many market participants are fully aware of this price action and are probably happy to wait on the sidelines until we get additional confirmation.