Bitcoin and Ethereum Market Analysis: BTC Drops Over the Weekend, Briefly Surpassing the $27,000 Mark

Bitcoin experienced a short-lived surge above $27,000 during the weekend, reflecting the market's persistent uncertainty. The global cryptocurrency market displayed a slight uptick as the weekend began, with a 0.42% increase at the time of writing. Meanwhile, Ethereum managed to maintain its position above the recent $1,535 benchmark.

Bitcoin's Market Performance

Bitcoin (BTC) experienced a dip below $27,000 as the weekend began, following a late Friday price surge. After reaching a low point of $26,686.32 earlier in Friday's trading session, BTC/USD rose to a peak of $27,092.70 as the day unfolded. Despite its subsequent drop, BTC's current trading value of $26,866.74 remains above the previous day's low.

The cryptocurrency's stabilization is associated with the relative strength index (RSI) consistently staying above the 45.00 benchmark. Currently at 46.72, the next likely target is the 50.00 threshold, which, if reached, would push Bitcoin back above $27,000. As it stands, Bitcoin's present trading value is 4% lower than it was at this time last week.

Ethereum's Market Standing

Ethereum (ETH) remains relatively stable at the time of writing, as the cryptocurrency held its ground over the weekend. ETH/USD reached a peak of $1,571.75 on Friday, but has since fallen to a present value of $1,546.80. This current value is slightly above the previous day's low of $1,538.09, a figure just above a support point at $1,535.

The decline in Ethereum's value is in line with the RSI's inability to surpass its resistance point at the 40.00 mark. At present, the price strength stands at 37.46, with the 10-day moving average continuing its downward trajectory. This raises the question: could Ethereum's value drop below $1,700 this weekend? Feel free to share your insights.

Frequently Asked Questions

How do I open a Precious Metal IRA

The first step in opening an Individual Retirement Account, (IRA), is to decide if it’s something you want. To open the account, complete Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.

Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process is identical to an ordinary IRA.

To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Additionally, you must make regular contributions. These rules apply whether you’re contributing through an employer or directly from your paychecks.

You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can’t purchase physical bullion. This means that you will not be allowed to trade shares or bonds.

To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.

There are two main drawbacks to investing through an IRA in precious metallics. They aren’t as liquid as bonds or stocks. This makes them harder to sell when needed. They don’t yield dividends like bonds and stocks. Therefore, you will lose money over time and not gain it.

Can I buy or sell gold from my self-directed IRA

However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. Transfer funds from an existing retirement account are also possible.

The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.

If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts are financial instruments that are based on gold’s price. These contracts allow you to speculate on future gold prices without actually owning it. However, physical bullion is real gold or silver bars you can hold in your hands.

Should you open a Precious Metal IRA

The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There are no ways to recover the money you lost in an investment. This includes investments that have been damaged by fire, flooding, theft, and so on.

This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. You would probably get more if you sold them today than you paid when they were first created.

Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

If you decide to open an account, remember that you won’t see any returns until after you retire. Don’t forget the future!

What are the benefits of having a gold IRA?

The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You can decide how much money you withdraw each year. And there are many different types of IRAs. Some are better suited for college students. Some are better suited for investors who want higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. However, once they begin withdrawing funds, these earnings are not taxed again. So if you’re planning to retire early, this type of account may make sense.

An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don’t have to worry about paying taxes on your gains while you wait to access them. People who want to invest their money rather than spend it make gold IRA accounts a great option.

Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don’t need to worry about making monthly deposits. Direct debits could be set up to ensure you don’t miss a single payment.

Gold is one of today’s most safest investments. Because it’s not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil, gold prices tend not to fluctuate. Therefore, gold is often considered a good investment to protect your savings against inflation.

How is gold taxed by Roth IRA?

An investment account’s tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.

The money can be withdrawn tax-free if it’s deposited in a traditional IRA (or 401(k)). You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.

The rules that govern these accounts differ from one state to the next. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. In Massachusetts, you can wait until April 1st. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.

What amount should I invest in my Roth IRA?

Roth IRAs can be used to save taxes on your retirement funds. You cannot withdraw funds from these accounts until you reach 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you can’t touch your principal (the initial amount that was deposited). This means that you can’t take out more money than you originally contributed. If you take out more than the initial contribution, you must pay tax.

You cannot withhold your earnings from income taxes. When you withdraw, you will have to pay income tax. Let’s assume that you contribute $5,000 each year to your Roth IRA. In addition, let’s assume you earn $10,000 per year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 The remaining $6,500 is yours. Since you’re limited to taking out only what you initially contributed, that’s all you could take out.

So, if you were to take out $4,000 of your earnings, you’d still owe taxes on the remaining $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.

There are two types of Roth IRAs: Traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.

Roth IRAs don’t allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. It doesn’t matter if you are 70 1/2 or older before you withdraw your contribution.

Statistics

  • If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • (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)
  • The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)

External Links

wsj.com

investopedia.com

forbes.com

cftc.gov

How To

The History of Gold as an Asset

From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. It was also traded internationally due to its high value. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.

In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This resulted in a decline of foreign currency demand and an increase in the price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to return some of the gold they had left to Europe.

Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. The price of gold rose significantly over the years. Even though the price of gold fluctuates, it remains one the best investments you can make.

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By: Eliman Dambell
Title: Bitcoin and Ethereum Market Analysis: BTC Drops Over the Weekend, Briefly Surpassing the $27,000 Mark
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-falls-on-saturday-following-brief-spell-above-27000/
Published Date: Sat, 14 Oct 2023 12:07:17 +0000

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