The trading session of today saw Bitcoin pausing as investors took stock of the recent gains, which followed a notable two-month high. At the time of writing, the global market cap has seen a minor decline of 0.01%, while Bitcoin manages to stay above the $28,000 threshold. Ethereum, on the other hand, has seen a slight increase and continues to maintain its position around the $1,580 mark.
On Wednesday, Bitcoin bulls held onto the recent gains, seemingly as traders were cashing in on the profits from the recent surge. BTC/USD dipped to a low of $28,172.91 earlier in the day's session, a day following a high of $28,889.01. This consolidation of price comes in the wake of the most prominent cryptocurrency in the world surging to a high of $30,000 earlier in the week.
An examination of the chart shows that the dip aligns with the 14-day relative strength index (RSI) maintaining its position slightly above a base at the 62.00 mark. At the time of writing, the index is recording a figure of 62.28, subsequent to an unsuccessful attempt to break out from a resistance of 65.00 on Monday. It is plausible that the price will continue to stabilize until either the mentioned base or ceiling is breached.
Ethereum (ETH) saw modest gains mid-week, maintaining its position around the $1,580 mark. Post a low of $1,554.40 on Tuesday, ETH/USD escalated to an intraday high of $1,584.73 during the day. The earlier gains have now cooled down, with Ethereum currently trading at $1,577.40, with short-term bulls still eyeing the $1,600 threshold.
Achieving this may be challenging as the momentum seems to be bearish, with the 10-day (red) moving average continuing on a downward trajectory. While recording a 45.75, a ceiling awaits ETH's price strength at the 49.00 zone. If it manages to exceed this, it is likely that there will be a surge of bulls.
As the week unfolds, the possibility of a breakout remains uncertain. Feel free to share your insights below.
Frequently Asked Questions
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates can also affect the gold price.
Due to their limited supply, gold prices fluctuate. Additionally, physical gold can be volatile because it must be stored somewhere.
How to open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be completed within 60 days after opening the account. Once you have completed this form, it is possible to begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS requires that you are at least 18 years old and have earned an income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Additionally, you must make regular contributions. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. You can only purchase bullion in physical form. This means you won’t be able to trade stocks and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is available from some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they aren't as liquid than stocks and bonds. This makes it harder to sell them when needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose more money than you gain over time.
What is a gold IRA account?
You can purchase physical gold bullion coins anytime. To invest in gold, you don't need to wait for retirement.
The beauty of owning gold as an IRA is you can hold on to it forever. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reporting.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit required to purchase gold bullion coins is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It's best not to take out more 50% of your total IRA investments each year. Otherwise, you'll face steep financial consequences.
What proportion of your portfolio should you have in precious metals
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also not affected by inflation and depression.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Because they are rare, they become more pricey and lose value.
You must therefore diversify your investments in precious metals to reap the maximum profits. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
The best way online to buy gold or silver
First, understand the basics of gold. The precious metal gold is similar to platinum. It's rare and often used to make money due its resistance and durability to corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren't circulated in any currency exchange systems. A person can buy 100 grams of gold for $100. For every dollar spent, the buyer gets 1 gram of Gold.
The next thing you should know when looking to buy gold is where to do it from. If you want to purchase gold directly from a dealer, then a few options are available. First off, you can go through your local coin shop. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. Private sellers typically charge 10% to 15% commission on each transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
Another way to buy gold is by investing in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks often charge higher interest rates then pawnshops.
You can also ask for help to purchase gold. Selling gold can also be done easily. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
By: Eliman Dambell
Title: Analysis of Bitcoin and Ethereum: BTC Bulls Maintain Momentum Amid Recent Highs
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-bulls-secure-gains-following-a-recent-multi-month-high/
Published Date: Wed, 18 Oct 2023 13:16:08 +0000