Bitcoin's Market Cap and Trading Volume
Bitcoin (BTC) currently has a market cap of $856 billion and a 24-hour trading volume of $38.39 billion. These figures highlight the significant influence of Bitcoin in the cryptocurrency market. However, a deeper analysis of Bitcoin's technical data reveals a more complex market scenario.
An examination of Bitcoin's oscillators, including the relative strength index (RSI), stochastic, and commodity channel index (CCI), shows bearish sentiment. With RSI at 79, stochastic at 93, and CCI at 229, these high values suggest overbought conditions. This indicates a potential break from the recent peak and may signal a price correction or consolidation in the near future.
Moving Averages Analysis
On the other hand, the moving averages present a more bullish outlook. Both the exponential moving averages (EMAs) and simple moving averages (SMAs) for various time periods indicate positive sentiment in the market. The values of these averages are steadily increasing, demonstrating a strong and sustained uptrend in Bitcoin's price movement.
Daily Chart Analysis
The daily chart confirms the bullish sentiment, showing a clear uptrend from a low of approximately $34,132 to a high near $44,490. However, the declining volume in recent dates suggests a potential decrease in momentum or a consolidation phase after the rapid increase.
Volume Pattern in the 4-hour Chart
An important observation from the 4-hour chart is the volume pattern. While volume spikes on green candles indicate bullish sentiment, the appearance of a high-volume red candle suggests strong selling pressure or profit-taking. This could be an early signal of a shift in market sentiment.
Taking into account the analysis of oscillators, moving averages, and charts, the overall outlook for Bitcoin is predominantly bullish. The consistent bullish signals from EMAs and SMAs across different time periods, along with the strong uptrend in the daily chart, indicate a robust momentum in Bitcoin's price trajectory.
Despite the bullish signals from moving averages, the bearish outlook should not be ignored. The overbought conditions indicated by oscillators like RSI, stochastic, and CCI suggest a potential price correction or consolidation for Bitcoin.
Register your email here to receive weekly price analysis updates:
What are your thoughts on Bitcoin's market action on Wednesday morning? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure which option to choose, consider investing in both options.
You can earn potential returns on your investment of gold. Retirees will find it an attractive investment.
While most investments offer fixed rates of return, gold tends to fluctuate. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
Your gold will always be accessible as long you keep it in a safe place. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
You can also sell gold anytime you like by investing in it. You can also liquidate your gold position at any time you need cash, just like stocks. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Do not buy too much at one time. Start with just a few drops. Then add more as needed.
Keep in mind that the goal is not to quickly become wealthy. 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.
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion is the most popular method of investing in gold. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you require cash flow, gold stocks can work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much of your portfolio should be in precious metals?
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. However, they may not always move in synchrony 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 expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They are more rare, so they become more expensive and less valuable.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What should I pay into my Roth IRA
Roth IRAs allow you to deposit your money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you cannot touch your principal (the original amount deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. When you withdraw, you will have to pay income tax. Consider, for instance, that you contribute $5,000 per 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 You would have $6,500 less. Since you're limited to taking out only what you initially contributed, that's all you could take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs won't let you deduct your contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal limit, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. In addition, because of its value, it was traded internationally. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
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. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. They needed to pay off debt because they had too much money coming into 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. However, after World War I, many European countries stopped taking gold and began using paper money instead. The price of gold rose significantly over the years. Even though the price fluctuates, gold is still one of best investments.
By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Retraces at Formidable $44,500 Resistance Barrier
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-retraces-at-formidable-44500-resistance-barrier/
Published Date: Wed, 06 Dec 2023 14:15:49 +0000