In the wake of Bitcoin's 15th anniversary, the cryptocurrency giant faces a challenging market landscape as its price experienced a 6.7% dip, ranging between $42,350 and $42,619. These fluctuations occurred amid swirling rumors of spot Bitcoin exchange-traded fund (ETF) rejections.
Bitcoin Price Analysis
Over the past day, Bitcoin's price fluctuated between $41,804 and $45,813, with a market capitalization of $832 billion and a trading volume of approximately $35.96 billion. Analysis of oscillators and moving averages reveals a mixed sentiment. While the momentum and moving average convergence/divergence (MACD) level indicate a bearish trend, the exponential and simple moving averages, particularly over longer periods (50, 100, and 200 days), present a strong bullish signal.
Further examination of the relative strength index (RSI), Stochastic, commodity channel index (CCI), average directional index, and awesome oscillator reveals a neutral stance. However, the negative momentum and MACD level indicate selling pressure. Despite this, the moving averages predominantly reflect a bullish sentiment, especially over longer time frames, suggesting an underlying optimistic trend.
An analysis of the daily chart illustrates a significant uptrend followed by a sharp decline, with the recent large red candle indicating strong selling pressure. This decline was preceded by a consolidation phase, likely an accumulation phase before the sell-off. The transition from bullish to prominent bearish flags signals a reversal, serving as an exit point just before the decline.
Zooming in on the 4-hour chart reveals a recent surge in price followed by a steep downturn. This granularity provides clearer entry and exit points. An upward trend confirmation serves as a green light for entry, while an ideal exit point is at the peak or as the downturn forms, breaking below the previous low and indicating a momentum shift.
The 1-hour chart offers a detailed view of the rapid price fall, characterized by a significant dip during the day. This level of granularity is particularly beneficial for short-term traders seeking quick trades within consolidation phases. The exit strategy aligns with the 4-hour chart, emphasizing the break below the support level from previous areas as a signal to avoid further downturns.
Bullish Outlook:
Despite recent downturns and market volatility, the longer-term moving averages and certain oscillators suggest an underlying bullish sentiment. If the market can leverage this period of consolidation as a springboard and historical support levels remain intact, there is potential for an upward trajectory. Bitcoin's 15th anniversary, coupled with its innovative spirit and growing adoption, could catalyze a resurgence, especially if external factors such as ETF approvals turn favorable.
Bearish Outlook:
The sharp decline observed in the daily and shorter-term charts, accompanied by negative momentum and MACD levels, paints a worrisome picture for Bitcoin. The selling pressure and break below key psychological and technical support levels indicate a continuation of the bearish trend. If external market forces, such as the potential rejection of spot Bitcoin ETFs, materialize negatively, it could further erode investor confidence and lead to sustained downturns. Given these conditions, a cautious approach is warranted for those looking to preserve capital.
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Frequently Asked Questions
How to Open a Precious Metal IRA?
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. You must complete this form within 60 days of opening your account. After this, you are ready to start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
To get a Roth IRA, complete Form 8903. The process for an ordinary IRA will not be affected.
To qualify for a precious-metals IRA, you'll need to meet some requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made on a regular basis. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. But, you'll only be able to purchase physical bullion. You won't have the ability to trade stocks or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option can be provided by some IRA companies.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.
What are the pros and disadvantages of a gold IRA
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. There are some disadvantages to this investment.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. Most insurers require you to own a minimum amount of gold before making a claim. Insurance that covers losses upto $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the amount of gold that you are allowed to own. Others allow you to pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts, however, allow for greater flexibility in buying gold. They let you set up a contract that has a specific expiration.
It is also important to choose the type of insurance coverage that you need. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. However, it does cover damage caused by natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
After filling in the forms, please send them to the provider. The company will then review your application and mail you a letter of confirmation.
When opening a gold IRA, you should consider using a financial planner. A financial planner can help you decide the type of IRA that is right for your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Should You Get Gold?
In the past, gold was considered a haven for investors during economic turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Some experts believe that this could change very soon. They say that gold prices could rise dramatically with another global financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offer varying degrees of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.
So, if you're thinking about buying gold, make sure you do your research first. Protect your gold if you already have it.
What is a Precious Metal IRA and How Can You Benefit From It?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion is often used for precious metals. Bullion is the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. You'll get dividends each year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. You pay only a small percentage of your gains tax. Additionally, you have access to your funds at no cost whenever you need them.
What precious metals do you have that you can invest in for your retirement?
The best precious metal investments are gold and silver. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Unlike gold, silver tends to go up instead of down.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's like silver or gold in that it is durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: Rhodium is used in catalytic converters. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more accessible. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
finance.yahoo.com
cftc.gov
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Aside from its inherent value, it could be traded internationally. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price 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.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC 15th Anniversary Celebrations Marred by Market Mayhem
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-15th-anniversary-celebrations-marred-by-market-mayhem/
Published Date: Wed, 03 Jan 2024 14:30:56 +0000
