LMAX Digital volumes have been on the softer side in the early week as the market struggles to find direction.

Total notional volume for Tuesday came in at $484 million, 27% below 30-day average volume.

Bitcoin volume printed $246 million, 30% below 30-day average volume. Ether volume came in at $80 million, 50% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,066 and average position size for ether at $3,421.

Bitcoin and ETH volatility remains elevated just off recent multi-month highs. We’re looking at average daily ranges in bitcoin and ether of $3,760 and $219 respectively.

Over the past 24 hours, the crypto market has shown some weakness but no fundamental shift in our view.

Technically speaking, with bitcoin still holding up above its 50-week moving average on a weekly close basis, the uptrend remains intact.

Both bitcoin and ETH are well off last week’s lows and the early-week softness appears more like a correction ahead of what could be renewed upside, rather than a breakdown of the shorter-term reversal trend.

The fact that sentiment is currently very muted also suggests that the balance of risk favors a surprise to the upside, especially if traders interpret this dip as a buying opportunity rather than a capitulation.

As far as confirmation levels go, reassurance of the constructive outlook hinges on bitcoin’s ability to reclaim the $107,500 area — which corresponds to Monday’s high.

A break back above this zone would likely act as a catalyst for fresh demand and could give the market fire-power for a sustained push higher into year-end.

We continue to lean on seasonal trend analysis as well, which has historically shown strong performance in Q4 and into Q1 for crypto assets, and given the current setup — trend intact, sentiment low, macro supportive — we believe the next leg higher remains very much intact.

Meanwhile, broader macro conditions are providing tailwinds: equity markets are back in rally mode, and pricing in for Federal Reserve rate cuts has turned more investor friendly, which typically benefits risk assets — crypto included.

In short: this continues to feel less like the end of an up-trend and more like a consolidation phase ahead of further upside to fresh record highs.