Bitcoin's Price Dynamics
As of December 15, 2023, the price of bitcoin (BTC) showcases an interesting mix of bullish trends and nuanced fluctuations. Following the U.S. Federal Reserve meeting on Wednesday, BTC's price experienced an improvement, but it has since entered a tight consolidated pattern.
Bitcoin's Current Status
Currently, bitcoin is priced at $42,696, with a 24-hour range between $42,067 and $43,329, indicating moderate volatility. The market capitalization stands at $835 billion, supported by a substantial 24-hour trading volume of $24.86 billion. While BTC has seen a 2.2% decrease over the past week, it has risen by 10.7% against the U.S. dollar.
Market Momentum Analysis
Oscillators, which are essential tools for measuring market momentum, present a mixed but generally neutral stance. The relative strength index (RSI) currently stands at 51, indicating a balanced market sentiment. The Stochastic stands at 65, aligning with a neutral perspective. However, the commodity channel index (CCI) dips to -71, suggesting a bearish undercurrent but remaining within the neutral zone.
Market Trend Analysis
The moving averages, crucial for understanding short and long-term market trends, offer a nuanced view. Shorter-term exponential (EMA) and simple moving averages (SMA) for 10 and 20-day periods lean towards a bearish signal, emphasizing the recent downtrend. On the other hand, longer-term EMAs and SMAs for 30, 50, 100, and 200-day periods mostly reflect a bullish undertone over an extended period. This disparity between short and long-term perspectives highlights the complexity of the current market dynamics.
Daily Chart Analysis
The daily chart analysis still supports a bullish trend, characterized by higher highs and lows, albeit with occasional pullbacks. Support and resistance levels are identified at approximately $35,651 and $44,729, respectively. These levels, combined with significant trading volumes during substantial price movements, validate the current trend and provide valuable insights for potential entry and exit points.
4-Hour Chart Analysis
The 4-hour chart offers a more detailed and fluctuating scenario. Despite the overall uptrend, this timeframe shows increased sideways movement, with a recent large red candle indicating potential selling pressure. Short-term support and resistance levels are identified around $40,181 and $43,440. This chart provides a more immediate view of the market, essential for intra-day traders and those looking to capitalize on short-term price movements.
Based on the data and trends observed on December 15, 2023, the outlook for Bitcoin leans towards bullish. The daily chart's pattern of higher highs and lows, combined with the 'Buy' signals from longer-term moving averages, suggests a strong underlying strength and optimism in the market. The moderate volatility and significant trading volume further support a positive sentiment, indicating a likelihood of sustained upward momentum in the near future.
In contrast, the bearish outlook is based on short-term signals and potential vulnerabilities in the Bitcoin market as of December 15, 2023. The increased sideways movement on the 4-hour chart and the recent large red candle, along with 'Sell' signals from shorter-term moving averages, suggest potential selling pressure and short-term bearishness.
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What are your thoughts on bitcoin's market action on Friday morning? Share your opinions in the comments section below.
Frequently Asked Questions
How do I Withdraw from an IRA with Precious Metals?
First decide if your IRA account allows you to withdraw funds. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities can accept bullion bar, while others require you buy individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
Bullion bars require less space, as they don't contain individual coins. However, each coin will need to be counted individually. However, individual coins can be stored to make it easy to track their value.
Some people prefer to keep coins safe in a vault. Others prefer to store their coins in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
How Much of Your IRA Should Include Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. It doesn't matter how rich you are to invest in precious metals. There are many ways to make money on silver and gold investments without spending too much.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. You might also want to use an IRA rollover program offered through your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
And, unlike traditional investments, their prices tend to rise over time. You'll probably make more money if your investment is sold down the line than traditional investments.
How much should precious metals make up your portfolio?
First, let's define precious metals to answer the question. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. Gold is by far the most common precious metal traded today.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
What precious metals could you invest in to retire?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has been a favorite among investors for years. It's a great option for those who want stability. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium: Rhodium can be used in catalytic convertors. It is also used as a jewelry material. It is also very affordable in comparison to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can I purchase gold with my self directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They allow you to speculate on future prices without owning the metal itself. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
How much is gold taxed under a Roth IRA
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you up to April 1st. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, you should plan ahead and take distributions as soon as possible.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- 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 IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
How to Keep Physical Gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
An alternative option would be to buy physical gold itself. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It is easier to view how much gold has been stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You're also less susceptible to theft than investing with stocks.
However, there can be some downsides. You won't get the bank's interest rates or investment money. Also, you won't be able to diversify your holdings – you're stuck with whatever you bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com is the best website to learn about gold purchases in an IRA.
By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC’s Consolidation Phase Signals Cautious Market Approach
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btcs-consolidation-phase-signals-cautious-market-approach/
Published Date: Fri, 15 Dec 2023 13:30:48 +0000