The current state of the cryptocurrency market has bitcoin hovering around the $36,209 mark, with anticipation for potential shifts. In the previous day, BTC experienced a dip to $35,109 per coin, but it quickly rebounded and is now back above the $36K range. The release of the consumer price index (CPI), a crucial inflation gauge, has intensified bitcoin's market volatility. However, the reported rise was lower than the 0.1% expected by economists.
Bitcoin's Market Indicators
Bitcoin's relative strength index (RSI) currently stands at 66, indicating a neutral to bearish stance. The Stochastic value is at 51, and the commodity channel index (CCI) is at 40, both suggesting a similar sentiment. Traders and investors who aim to capitalize on recent profits might interpret these indicators as cues for navigating through a period of market consolidation.
These readings imply a period of stabilization, with no clear directional bias in the immediate term. However, the neutral status of these oscillators could change rapidly, requiring continuous market monitoring. The exponential moving average (EMA) and simple moving average (SMA) for the 10-day period signal a bearish sentiment, with values at $36,060 and $36,146, respectively.
These indicators suggest that bitcoin may face further downward pressure in the short term. During Tuesday's trading, BTC experienced a 4.46% decline against the U.S. dollar. The current sessions on Wednesday reflect evident market uncertainty. Traders are advised to exercise caution, as these signs indicate a path of least resistance leaning towards lower levels.
While demand has decreased at elevated price levels, signaling a shift towards a more bearish short-term sentiment, the longer-term perspective paints a more optimistic picture. Both the EMA and SMA for the 200-day period are at $28,818 and $28,762, respectively, indicating a more confident environment.
This suggests that while short-term volatility is present, the long-term outlook remains bullish. Strategic patience is crucial for long-term profit-takers. Bitcoin's market capitalization currently stands at $708 billion, with a 24-hour trading volume of $24.51 billion, indicating significant market engagement.
In this nuanced market, conservative traders may consider taking profits from long positions and waiting for confirmation of flipped resistance before re-entering the market. On the other hand, aggressive traders may explore early short positions, aiming to capitalize on the anticipated short-term reversal.
The launch of a spot bitcoin exchange-traded fund (ETF) is an upcoming event that could significantly influence the duration of bitcoin's rally. However, an unexpected announcement of ETF approval would be detrimental to short positions in this area, leading to rapid liquidation.
Despite short-term volatility, bitcoin's long-term moving average indicators suggest a bullish trend. The strong support reflected in the 200-day EMA and SMA levels, coupled with the ongoing accumulation phase, positions bitcoin for potential upward momentum.
On the other hand, bitcoin's current market dynamics and technical indicators signal the possibility of bearish trends. The pressure indicated by the short-term EMAs and SMAs, along with a neutral to slightly bearish oscillator outlook, suggests a potential downturn.
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What are your thoughts on bitcoin's market action on Wednesday? Share your opinions in the comments section below.
Frequently Asked Questions
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are better suited to college savings. Some are better suited for investors who want higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. 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.
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 that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. This eliminates the need to constantly make deposits. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even during economic turmoil the gold price tends to remain fairly stable. Gold is a good option for protecting your savings from inflation.
Should you Invest In Gold For Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. You can invest in both options if you aren't sure which option is best for you.
Not only is it a safe investment but gold can also provide potential returns. It's a great investment for retirees.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold is its tangible value. Gold is more convenient than bonds or stocks because it can be stored easily. It's also portable.
You can always access gold as long your place it safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. When the stock market drops, gold usually rises instead.
Another benefit to investing in gold? You can always sell it. As with stocks, your position can be liquidated whenever you require cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. Add more as you're able.
The goal is not to become rich quick. It is to create enough wealth that you no longer have to depend on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Should You Open a Precious Metal IRA?
Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. This includes investments that have been damaged by fire, flooding, theft, and so on.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. Don't forget the future!
Is it possible to hold a gold ETF within a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
A Individual Retirement Annuity (IRA), is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs can be made without tax.
What Precious Metals Can You Invest in for Retirement?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one the oldest forms currency known to man. It is stable and very secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: The popularity of silver has always been a concern for investors. This is a great choice for people who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is relatively affordable when compared to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
The best place to buy silver or gold online
To buy gold, you must first understand how it works. The precious metal gold is similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual 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 can only be used as investment currency. They increase in value due to inflation.
They aren’t exchangeable in any currency exchange. A person can buy 100 grams of gold for $100. For every dollar spent, the buyer gets 1 gram of Gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. You have a few options to choose from if you are looking to buy gold directly through a dealer. First off, you can go through your local coin shop. You can also try going through a reputable website like eBay. You can also purchase gold through private online sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers typically charge 10% to 15% commission on each transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another option for buying gold is to invest in physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure 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 provide you with a loan to cover the amount you wish to invest in gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks typically charge higher interest rates than pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is simple too. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Enters a Steady Range-Bound Consolidation Phase
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-enters-a-steady-range-bound-consolidation-phase/
Published Date: Wed, 15 Nov 2023 12:31:41 +0000