Crypto in correction, but Bitcoin bounces from $40,000

Digital assets are seeing a decline today.
In addition to Bitcoin itself, which fell from around $44,000 to test the $40,000 level, the decline is also extending to the altcoin market.
Today we are seeing weaker sentiment on the indices.
Both European benchmarks and Wall Street contracts are slightly lower.
US dollar futures, USDIDX are up 0.12%.
It appears that volatility in the cryptocurrency market could increase again this evening when the Fed decides on interest rates (8 p.m.).
In this article, in collaboration with XTB experts, you will find the latest news and updates on the crypto market.
XTB is a world class one stop shop investment broker, with a global presence in over 13 countries, licensed regulated by major financial regulatory institutions.
The XTB platform offers access to more than 6000 financial instruments – both instruments with real properties, stocks and ETFs, and CFD-type derivative instruments.
Discover XTB's offer There was no news in the cryptocurrency market that justified such a large correction.
However, the declines occurred soon after Bitcoin closed its eighth consecutive weekly candle higher and appear to be due to pressure to make gains, following a notable rally.
The demand came to a head rather quickly and brought the price of Bitcoin above $42,000.
According to Coinglass data, the dynamic decline liquidated approximately $270 million in long positions and $1.2 billion in open positions in the BTC options market, which is currently worth approximately $17.9 billion.
The largest cryptocurrency fell about 4% this week, although at its peak it was close to 8%.
Looking at the MACD, such a dynamic correction can only be comparable to the declines in early September, when Bitcoin fell from $27,500 to around $24,000.
If the upside structure is preserved, a further scenario appears to be a consolidation around $40,000.
Bitcoin Chart (H1, H4) The bulls managed to stop the decline in Bitcoin price at the SMA100 support level (black line), at $40,000.
Historically this year, the SMA100 average has been a major determinant of momentum, and a bullish reaction around it looks positive at least in the short term.
Furthermore, it took place at the psychologically significant level of $40,000.
Source: xStation5 How to Invest in Cryptocurrencies with CFDs Investing in contracts for difference (CFDs) on cryptocurrencies has become an attractive option for those who wish to participate in the cryptocurrency market without actually owning them.
CFDs offer investors the opportunity to speculate on cryptocurrency price fluctuations without having to manage complex digital wallets or worry about the security of virtual currencies.
This allows investors to take advantage of the volatility of the cryptocurrency market, which can be significant.
Additionally, CFDs offer the ability to trade with leverage, allowing investors to gain greater exposure to cryptocurrencies than their invested funds.
With XTB you can invest in over 45 CFDs on cryptocurrencies.
Investing in cryptocurrency CFDs involves significant risks.
The cryptocurrency market is known for its high volatility, which can cause sudden and unpredictable price movements.
The use of leverage can amplify both profits and losses, making it crucial to have a solid risk management strategy and employ control measures, such as the use of stop losses.
XTB also provides a variety of tools and educational resources to help you make informed cryptocurrency investment decisions.
Whether you are an experienced investor or a beginner, XTB can meet your needs and help you achieve your financial goals.
Invest in Crypto CFDs now According to Glassnode data, the SOPR index, which tracks the average returns of investors during the Bitcoin rally, remained at very high levels for almost 50 days, longer than the average duration of 17 days (the period longer since the all-time high in November 2021).
On the one hand, this meant that the vast majority of investors took profits and, on the other hand, there was an influx of demand that absorbed supply for many weeks.
Bitcoin 'on-chain' Source: Glassnode On-chain data shows that investors are depositing their Bitcoin into cryptocurrency exchanges at a record rate.
Currently, the levels are the lowest since July 2020.
This means that investors are not particularly keen to sell their Bitcoin, despite such a huge rally.
Limited supply generally favors higher prices.
Source: Glassnode Glassnode analysts suggest that the rapid increase in the average value of BTC transfers to cryptocurrency exchanges is indicative of institutional activity, inflating the average of such transactions to now close to $30,000.
Source: Glassnode 2023 was a fantastic year for Bitcoin, which for many represents the digital 'brother' of gold.
This year the largest of the cryptocurrencies has managed to significantly outperform the growth of spot gold.
Source: Glassnode The smaller cryptocurrencies, despite their recent big increases, are still well below Bitcoin and the second largest cryptocurrency, Ethereum, on average in 2023 this year.
Source: Glassnode How to stay updated on market news and analysis? If you want to stay updated on the latest market news and access economic-financial analyzes and forecasts, we suggest you visit the XTB news section.
In this section, you will find in-depth analysis on the financial markets and sector news that will help you structure your trading strategies.
If you want to maximize your profits and minimize risks, feel free to visit XTB's market news and analysis section.
Read the latest NEWS