The volatile world of cryptocurrency witnessed the end of a five-day downturn for Bitcoin on a recent Friday, indicating a temporary price floor. This shift comes in the wake of the latest U.S. inflation report which, surprisingly, remained static at 3.7%. Following suit, Ethereum also saw a slight upturn, after grappling with a bearish trend of its own.
Bitcoin's Market Resurgence
Bitcoin (BTC), the leading digital currency, remarkably broke free from a five-day streak of losses. This change came about as market participants responded to the most recent inflation report from the United States. After hitting a low of $26,558.32 during the session on Thursday, BTC/USD saw an uptick, reaching an intraday high of $26,919.04.
The recovery in price was witnessed after BTC hit the $26,560 level, which the bulls seem to be using as a temporary floor. Looking at the longer-term trend, the support seems to be around the $26,000 mark. However, with the Relative Strength Index (RSI) refusing to drop below 45.00, the price has so far not reached this area.
At present, the index is at 46.41 and has been unable to break through its 45.00 floor. Yet, it's possible the bears might attempt to push this lower in the coming days. If the current level holds steady, there's potential for Bitcoin to revisit the $27,000 level over the weekend.
Ethereum's Market Activity
Ethereum (ETH), another major player in the cryptocurrency market, also recorded a minor increase after bouncing back from its support level. In the recent trading session, ETH/USD touched a high of $1,553.51, a significant recovery from the previous day's low of $1,523.24.
The dip observed the day before marked the weakest point for Ethereum since March 12, when the price hit a low of $1,612. The 10-day moving average has steadily continued its downward crossover with the 25-day counterpart, hinting at a potential bearish sentiment in the near future.
While the current price is above the $1,535 floor, there's a likelihood that this could change in the days to come. The question remains – can the bulls withstand the ongoing bearish pressure? The answer lies in the forthcoming market trends of these digital currencies.
Frequently Asked Questions
Can I have physical gold in my IRA
Not only is gold paper currency, but it's also money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Gold has historically performed better during financial panics than other assets. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. 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. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
What is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used for precious metals. Bullion refers only to the actual metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This ensures that you will receive dividends each and every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. Additionally, you have access to your funds at no cost whenever you need them.
Should You Get Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts think this could change quickly. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Consider these things if you are thinking of investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save money for retirement even if you don't invest in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. If you lose your gold coins, you may never recover them.
You should do your research before buying gold. Make sure to protect any gold you already own.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
investopedia.com
How To
3 Ways To Invest in Gold For Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. There are several options to invest in precious metals if your employer has a 401k. You may also want to consider investing in gold outside of your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the three rules to follow if you decide to invest in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, instead, transfer cash to your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. Physical gold coins can be sold much faster than paper certificates. Physical gold coins don't require storage fees.
- Diversify your Portfolio. By investing in multiple assets, you can spread your wealth. This will reduce your risk and give you more flexibility in times of market volatility.
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By: Eliman Dambell
Title: Bitcoin and Ethereum's Market Performance: A Study of Bullish Resilience Amid Recent Losses
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-bulls-end-a-5-day-losing-streak/
Published Date: Fri, 13 Oct 2023 12:49:29 +0000
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