LMAX Digital volumes have been soft all week. Total notional volume for Wednesday came in at $333 million, 32% below 30-day average volume.

Bitcoin volume printed $211 million on Wednesday, 23% below 30-day average volume. Ether came in at $88 million, 46% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,144 and average position size for ether at 2,837.

Volatility is finally shooting up off yearly and multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $939 and $101 respectively.

We’re into the latter portion of the week and the crypto market is still waiting to hear about all of the fallout from the FTX implosion. We suspect this will continue for the coming weeks, and could continue to have a weighing influence.

One of the positives we’ve highlighted has been softer US inflation data and an impressive run higher in US stocks, something that has helped to offset some of the downside in crypto.

But we worry that the situation could intensify if and when stocks finally decide to roll back over. Clearly there have been correlations with global sentiment and as such, if stocks start to head south, it could invite more selling pressure on crypto.

Technically speaking, there is nothing encouraging out there at the moment. Both bitcoin and ether are in clear downtrends. Bitcoin recently made a fresh yearly low which exposes the next drop to $10k, while ether looks like it could gravitate back to its own yearly low.

There is some minor bitcoin resistance up at $17,170. A break above this level would perhaps take the immediate pressure off the downside, though we would really need to see a break back above $21,500 to suggest a bottom is in.