LMAX Digital volumes were up big on Wednesday. Total notional volume for Wednesday came in at $1.01 billion, 132% above 30-day average volume.

Bitcoin volume printed $663 million on Wednesday, 161% above 30-day average volume. Ether volume printed $254 million, 115% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,687 and average position size for ether at 2,996.

Volatility has been in correction mode after peaking out at a yearly high in March, though we are seeing signs of volatility turning back up again. We’re looking at average daily ranges in bitcoin and ether of $1,133 and $85 respectively.

We’re coming off a wild day of trade in the world of cryptocurrencies. After some impressive Tuesday strength, we got a whipsaw session on Wednesday, with an initial strong rally stalling out and reversing sharply.

We think a lot of this has to do with the fact the market couldn’t avoid feeling downside pressure from the move lower in US equities, with broad sentiment getting hit.

At the same time, setbacks have been well supported as the narrative around cryptocurrencies gains momentum in 2023.

Vulnerability in the banking sector has opened the door to a whole new wave of traditional market participants turned on to the value proposition that cryptocurrencies have to offer.

We believe this theme will ultimately be what continues to prop the market over the coming months, despite any downside pressure from lower stocks, higher rates, and regulatory uncertainty.

Looking ahead, it will be important to keep an eye on the highlighted technical levels in today’s report. While bitcoin holds above $26,525, the focus remains on the topside for a retest and break of the yearly high up at $31,050.