Bitcoin Value Surges as U.S. Equities and Precious Metals Remain Flat
Bitcoin has experienced a surge in value over the past day while U.S. equities and precious metals have remained relatively unchanged. Currently valued at $38,376, bitcoin's market capitalization stands at $750 billion. In the past 24 hours, bitcoin has gained 1.5% against the U.S. dollar and 5.4% over the past two weeks.
Bitcoin Oscillators Indicate Mixed Signals
As of December 1, 2023, bitcoin's oscillators show a mix of different signals. The relative strength index (RSI) is at 63, indicating a neutral position. Similarly, the Stochastic oscillator is also neutral at the moment, at 80. The commodity channel index (CCI) stands at 150, suggesting neutrality as well. However, the momentum indicator is at 2642, signaling positive sentiment. On the other hand, the moving average convergence/divergence (MACD) level is at 909, showing bearish signals.
Moving Averages Paint an Optimistic Picture
The moving averages provide a more optimistic outlook for bitcoin. Both the exponential moving average (EMA) and simple moving average (SMA) across various timeframes (10, 20, 30, 50, 100, and 200 days) indicate a positive upswing. Notably, the EMAs are higher than their corresponding SMAs, indicating a strong upward trend. The longer-term averages (100 and 200 days) are significantly lower than the current price, further reinforcing the bullish sentiment in the market.
Chart Analysis Highlights Strong Uptrend
Analysis of the 4-hour chart reveals a consistent uptrend with higher highs and lows, showing a notable increase from $25,977 to $38,839. The daily chart analysis aligns with this, demonstrating a strong upward movement over recent months. Potential entry and exit points vary, with a pullback to around $36,000 potentially offering an entry point. An exit could be considered near recent highs or a more conservative entry following a daily close above the resistance level at $38,839.
Bullish Outlook for Bitcoin
The current technical analysis of bitcoin as of December 1, 2023, strongly leans towards a bullish outcome. The indicators, particularly the moving averages, suggest a robust upward trend. The consistent positive momentum in the market, combined with the reduced supply of Bitcoin and high investor confidence, points to a likely continuation of the upward trajectory.
Bearish Perspective Shouldn't Be Ignored
Conversely, a bearish perspective must also be considered for bitcoin as of Friday morning Eastern Time. Despite some bullish indicators, the mixed signals from the oscillators cannot be overlooked. The neutral RSI and Stochastic, along with the contrasting signals from Momentum and MACD, suggest potential volatility and uncertainty.
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Frequently Asked Questions
Can the government take your gold?
Your gold is yours and the government cannot take it. You earned it through hard work. It belongs to you. There may be exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. If you owe taxes, your precious metals could be taken away. You can keep your gold even if your taxes are not paid.
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's tax-deferred until you withdraw it. You have total control over how much each year you take out. There are many types of IRAs. Some are better suited to college savings. Others are intended for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. 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 benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. That means you won't have to think about making deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one of the safest investment choices available today. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. It is therefore a great choice for protecting your savings against inflation.
How much of your IRA should include precious metals?
It's important to understand that precious metals aren't only for wealthy people. You don’t need to have a lot of money to invest. In fact, there are many ways to make money from gold and silver investments without spending much money.
You may consider buying physical coins such as bullion bars or rounds. It is possible to also purchase shares in companies that make precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to sell your investment, you will likely make more than with traditional investments.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, you must decide if you wish to withdraw money from your IRA account. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, figure out how much money will be taken out of your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars require less space, as they don't contain individual coins. But, each coin must be counted separately. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Others prefer to store them in a safe deposit box. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Who owns the gold in a Gold IRA?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How much tax is gold subject to in an IRA
The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
Loans can be secured with gold. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. However, there is no guarantee that the lender would do this. They may just keep it. They may decide to resell it. Either way you will lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
How much are gold IRA fees?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
A majority of providers also charge annual administration fees. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement account
cftc.gov
finance.yahoo.com
How To
The best way online to buy gold or silver
You must first understand the workings of gold before you can purchase it. Gold is a precious metal similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types currently available: legal tender and bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.
When you are looking to purchase gold, the next thing to know is where to get it. There are a few options if you wish to buy gold directly from a dealer. First, go to your local coin shop. You can also go to a reputable website such as eBay. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. You would receive less money from a private buyer than you would from a coin store or eBay. This is a great option for gold investing because you have more control over the item’s price.
Another way to buy gold is by investing in physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. The pawnshop is a small business that allows customers to borrow money to buy items. Banks typically charge higher interest rates than pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold is also easy. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Bulls Break Resistance, Holding Above $38K
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-bulls-break-resistance-holding-above-38k/
Published Date: Fri, 01 Dec 2023 14:15:34 +0000
