LMAX Digital volume cooled down on Wednesday after an impressive Tuesday performance. Total notional volume for Wednesday came in at $583 million, 19% below 30-day average volume.

Bitcoin volume printed $378 million on Wednesday, 16% below 30-day average volume. Ether volume came in at $135 million, 34% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,217 and average position size for ether at 5,160.

Volatility has been consolidating at the low end of the range in 2022. We’re now looking at average daily ranges in bitcoin and ether of $1,904 and $156 respectively.

There is definitely a sense of frustration in the crypto market given the lack of direction. We’ve been trading sideways in progressively tighter ranges in 2022, with no signs of a breakout in either direction.

Of course, this price action is not exclusive to cryptocurrencies. The same can be said for many traditional financial market assets as well. US equities have been chopping around for many weeks now, but haven’t really gone anywhere at all.

Overall, the market is unsure what to make of all of the big picture themes. We have COVID fallout, ongoing tension around Russia and the Ukraine, and rapidly rising inflation.

Central banks have been clearer about policy normalizations, but continue to do what they can to keep investors content. And so, it feels like we’re waiting for that next big show to drop.

Technically speaking, whenever you get markets trading in low volatility and tight ranges, it’s often a warning sign of imminent breakout and volatility ahead.

As far as key levels to watch go, keep an eye on the bitcoin yearly low and February high. A break on either side will likely trigger the next big move.

In the news, El-Salvador has postponed its planned USD $1 billion bitcoin bond offering due to unfavorable market conditions. ECB Lagarde has warned cryptocurrencies are being used to circumvent sanctions on Russia, though there is no strong evidence of this in the data.