Bitcoin Technical Analysis: Traders Await US Inflation Data as Market Consolidates

Bitcoin Consolidates in Tight Trading Range

Bitcoin (BTC) has experienced a period of consolidation over the weekend, with its price moving within a tighter triangular pattern. However, the relative strength index (RSI) suggests that Bitcoin is still trading in overbought territory, indicating the possibility of further price pullbacks.

During the past 24 hours, the price of Bitcoin has fluctuated between $36,692 and $37,291 per coin. The trade volume for Bitcoin on Monday is approximately $11.63 billion, with a market cap of $720 billion. While the price is still up 4.2%, the 30-day statistics show a rise of 36% against the U.S. dollar.

The Stochastic oscillator, which measures the momentum of an asset, currently sits at a neutral 76. This suggests that Bitcoin's upward movement may be reaching a plateau. When the Stochastic value hovers near the threshold, it often indicates a phase of market stabilization or slight corrections.

Additionally, the commodity channel index (CCI) of 130 supports a bearish outlook, aligning with the overbought signal from the RSI. The CCI's role in signaling new trends or extreme conditions becomes significant when its readings climb past the typical overbought level of 100, indicating the potential for a trend reversal.

However, the moving averages for Bitcoin maintain the allure of a bullish trend. The 10-day simple moving average (SMA) and exponential moving average (EMA) indicate optimistic market sentiment, with values of $36,133 and $36,232 respectively. The longer-term 20 and 30-day averages also suggest sustained upward momentum, positioning below the current price levels.

Bullish and Bearish Outlooks

Bull Verdict:

Despite the overbought signals from the RSI and CCI, the prevailing bullish sentiment indicated by Bitcoin's moving averages suggests that the underlying momentum remains strong. If historical patterns hold true, the dip suggested by the RSI might present a buying opportunity before the next upward swing.

Bear Verdict:

Although the moving averages support a bullish trend, the overbought signals from the RSI and CCI indicate a market that may be due for a correction.

Impact of Tuesday's CPI Report on Crypto Markets

Traders and investors are eagerly awaiting the U.S. inflation report, set to be released on Tuesday. This report has historically impacted market sentiment and could potentially influence future Federal Reserve rate hikes. The outcome of the report may have implications for the crypto market, as traders analyze its findings and adjust their strategies accordingly.

What are your thoughts on how Tuesday's CPI report will impact crypto markets? Share your opinions in the comments below.

Frequently Asked Questions

Is buying gold a good option for retirement planning?

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 bar is the best way to invest in precious metals. 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 can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.

What are the fees for an IRA that holds gold?

The Individual Retirement Account (IRA), fee is $6 per monthly. 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 will vary depending upon the type of IRA chosen. Some companies offer free checking, but charge monthly fees for IRAs.

In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate per year is.25%. However, these rates are typically waived if you use a broker like TD Ameritrade.

How can you withdraw from an IRA of Precious Metals?

First, decide if it is possible to withdraw funds from an IRA. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.

Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option is also available if you are willing to pay taxes on the amount you withdraw.

Next, you’ll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you’ve owned the account, and whether you intend to continue contributing to your retirement plan.

Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.

Once these calculations have been completed you will need to open an account with a brokerage. Many brokers offer signup bonuses or other promotions to encourage 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 areas will accept bullion, while others require you to purchase 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 their coins in a vault. Some people prefer to store their coins safely in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.

Is physical gold allowed in an IRA.

Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.

Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. It is possible to make money by investing in gold. However, it doesn’t guarantee that you’ll make a lot of money.

Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During these turbulent market times, gold was among few assets that outperformed the stocks.

Gold is one of the few assets that has virtually no counterparty risks. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.

Gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. The liquidity of gold makes it a good investment. This allows you take advantage of the short-term fluctuations that occur in the gold markets.

Should You Invest Gold in Retirement?

The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. Consider investing in both.

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. As a result, its value changes over time.

This does not mean you shouldn’t invest in gold. This just means you need to account for fluctuations in your overall portfolio.

Another benefit of gold is that it’s a tangible asset. Gold is less difficult to store than stocks or bonds. It can be easily transported.

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. It’s a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.

Additionally, it will be a benefit to have some of your savings invested into something that won’t lose value. Gold usually rises when the stock market falls.

Another advantage to investing in gold is the ability to sell it whenever you wish. 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. Do not put all your eggs in one basket.

You shouldn’t buy too little at once. Start with a few ounces. Continue adding more as necessary.

Keep in mind that the goal is not to quickly become wealthy. Instead, the goal is to accumulate enough wealth that you don’t have to rely on Social Security.

And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.

How much should your IRA 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 methods to make money off of silver and gold investments.

You might consider purchasing physical coins, such as bullion bars and rounds. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.

You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.

And, unlike traditional investments, their prices tend to rise over time. So, if you decide to sell your investment down the road, you’ll likely see more profit than you would with traditional investments.

Do you need to open a Precious Metal IRA

The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. You cannot recover any money you have invested. All your investments can be lost due to theft, fire or flood.

It is best to invest in physical gold coins and silver coins to avoid this type loss. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.

You should choose a reputable firm that offers competitive rates. You should also consider using a third party custodian to protect your assets and give you access at any time.

When you open an account, keep in mind that you won’t receive any returns until your retirement. Don’t forget the future!

Statistics

  • 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)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • 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

wsj.com

law.cornell.edu

finance.yahoo.com

How To

Three ways to invest in gold for retirement

It’s important to understand how gold fits in with your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also be interested in investing in gold beyond your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.

These are the rules for gold investing:

  1. Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, deposit cash into your accounts. This will protect your against inflation and increase your purchasing power.
  2. Physical Gold Coins – Physical gold coins are better than a paper certificate. It’s easier to sell physical gold coins rather than certificates. Also, there are no storage fees associated with physical gold coins.
  3. Diversify Your Portfolio. – Do not put all your eggs into one basket. This is how you spread your wealth. You can invest in different assets. This helps reduce risk and gives you more flexibility during market volatility.

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By: Jamie Redman
Title: Bitcoin Technical Analysis: Traders Await US Inflation Data as Market Consolidates
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-traders-anticipate-us-inflation-data-amidst-tight-trading-range/
Published Date: Mon, 13 Nov 2023 12:55:03 +0000

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