Introduction
On November 24, 2023, Bitcoin's price has shown a steady rise, reaching $37,903. The past 24 hours have seen BTC fluctuate between $36,972 and $38,078, with a trading volume of $17.41 billion. These numbers indicate strong market activity to close the week. Currently, Bitcoin's market capitalization stands at $737 billion.
Optimistic Technical Indicators
The technical indicators for Bitcoin (BTC) present an optimistic outlook. The relative strength index is at 62, and the Stochastic oscillator stands at 83, both suggesting a neutral stance. However, the commodity channel index, at 123, indicates growing momentum. These readings imply that while the market is not overbought or oversold, it is preparing for potential price movements.
Moving averages also signal positive sentiment. Both exponential and simple moving averages across different time frames (10, 20, 30, 50, 100, and 200 days) indicate an upward trajectory for BTC's price. This alignment across various time frames reinforces the strong and sustained bullish trend, boosting confidence among traders.
Encouraging Trend
An analysis of the 4-hour chart reveals an encouraging trend for Bitcoin. The chart displays a recent uptrend characterized by higher highs and higher lows. The increase in volume accompanying this uptrend signifies strength in the current movement. This pattern typically indicates sustained buying interest and could foreshadow further price increases.
Resistance and Support Levels
Bitcoin faces immediate resistance around the recent high of $38,078. Conversely, a significant support level is established at the previous low of around $35,539. Monitoring these levels is crucial for traders, as they provide insights into potential breakout or retracement scenarios.
Entry and Exit Points
A potential entry point for traders could be around the $37,000 mark, aligning with the latest breakout level. This price point may now act as a support level after previously serving as resistance. In terms of an exit strategy, traders may consider taking profits near the recent high of $38,078 or implementing a trailing stop loss if they anticipate a continuation of the uptrend.
Bullish Outlook
The technical analysis for BTC/USD on November 24, 2023, strongly suggests a bullish trend. The alignment of both oscillators and moving averages indicates sustained upward momentum. With a consistent pattern of higher highs and higher lows, along with a robust market capitalization, the overall market sentiment leans positively.
Bearish Concerns
Despite the current bullish indicators, a bearish outlook cannot be entirely dismissed for BTC as of November 24, 2023. The cryptocurrency market is known for its volatility, and a sudden shift in investor sentiment or external economic factors could reverse the current trend. The resistance level near $38,078 may prove to be a significant hurdle, and a failure to breach it could lead to a retracement.
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What are your thoughts on Bitcoin's market action on Friday morning? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
How does gold perform as an investment?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Gold prices are volatile due to their limited supply. There is also a risk in owning gold, as you must store it somewhere.
Can I hold a gold ETF in a Roth IRA?
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs don't have to be taxable
How much is gold taxed under a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules governing these accounts vary by state. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to wait until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
What are the pros & cons of a Gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. However, there are disadvantages to this type investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the amount of gold that you are allowed to own. Others let you choose your weight.
It's also important to decide whether or not to buy gold futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts, however, allow for greater flexibility in buying gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. However, it does cover damage caused by natural disasters. You might consider purchasing additional coverage if your area is at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs will not be covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must retain them for as long and as you require.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After receiving your application, the company will review it and mail you a confirmation letter.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
Do You Need to Open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There is no way to recover money that you have invested in precious metals. This includes all investments that are lost to theft, fire, flood, or other causes.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Do not open an account unless you're ready to retire. Remember the future.
Who owns the gold in a Gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
cftc.gov
bbb.org
finance.yahoo.com
investopedia.com
How To
Tips for Investing with Gold
Investing in Gold is a popular investment strategy. Because investing in gold has many benefits. There are several ways to invest in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before buying any type gold, it is important to think about these things.
- First, verify that your country permits gold ownership. If you have permission to possess gold in your country, you can then proceed. If not, you may want to consider purchasing gold from overseas.
- The second thing you need to do is decide what type of gold coins you want. You can choose between yellow gold and white gold as well as rose gold.
- You should also consider the price of gold. It is better to start small, and then work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Lastly, you should never forget that gold prices change frequently. Keep an eye on current trends.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: Bulls Eye $38K Amid Stiff Resistance
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-bulls-eye-38k-amid-stiff-resistance/
Published Date: Fri, 24 Nov 2023 15:23:29 +0000
