Bitcoin traded below $19,000 on Friday, putting it back in the red. This is due to the growing global economic slowdown. The Bank of England and the United States Federal Reserve both moved this week to raise interest rates. In addition, the Bank of Japan intervened in the currency market. Ethereum fell below $1,300 on Friday.
Bitcoin
Bitcoin (BTC), which fell below $19,000 Friday, was due to continued sell-off by financial markets, while the global economy slowed down.
The BTC/USD pair was closer to a three month low on Friday as the token fell to an intraday low at $18,859.75
The drop in both S&P 500 as well as gold came after the U.S. Fed rate increase.
This chart shows that today's fall is due to prices falling below $19,300. The 14-day relative strength indicator (RSI), also fell below a resistance level.
The index is currently tracking at 41.38 as of writing. This is slightly below the notable ceiling at 42.00.
The bears appear to be moving from this ceiling to a floor at 37.50. If this happens, BTC will likely trade below $18,000.
Ethereum
Like bitcoin, today's red waves collided also with ethereum, which saw its price drop below $1,300.
During today's session, the second-largest cryptocurrency in the world fell to $1,258.71 intraday.
This has led to the ETH/USD moving closer to $1,215 as a floor, which was reached earlier this week for first time since July.
The chart shows that the 10-day (red-colored) moving average has crossed its 25-day counterpart (blue), which is an indication of possible further declines.
Currently, the RSI is at 37.58. This is in oversold territory and could be a positive sign for investors hoping the sell-off slows.
In the seven last days, ETH fell by almost 12%.
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Frequently Asked Questions
Which precious metals are best to invest in retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver is a popular investment choice. It's an ideal choice for those who prefer to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. This is why it has become a favourite among investors looking for precious metals.
Who owns the gold in a Gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
To find out what options you have, consult an accountant or financial planner.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You can also choose to pay your salary directly by making a payroll deduction.
For a Roth IRA you will need to complete Form 8903. The process for an ordinary IRA will not be affected.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS says you must be 18 years old and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made on a regular basis. These rules apply whether you're contributing through an employer or directly from your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you won't be able purchase physical bullion. This means you won’t be able to trade stocks and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option may be offered by some IRA providers.
However, investing in precious metals via an IRA has two serious drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
How much of your portfolio should you hold in precious metals
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 very valuable in terms of trading and investment. Gold is currently the most widely traded precious metal.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. However, the prices of precious metals do not always move in sync with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. They become less expensive and have a lower value because they are limited.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
How does gold perform as an investment?
The supply and demand for gold affect the price of gold. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. Additionally, physical gold can be volatile because it must be stored somewhere.
Can I purchase gold with my self directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. 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. But physical bullion refers to real gold and silver bars you can carry in your hand.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
finance.yahoo.com
cftc.gov
How To
Tips for Investing Gold
One of the most sought-after investment strategies is investing in gold. There are many advantages to investing in Gold. There are many options for investing in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before you buy any type of gold, there are some things that you should think about.
- First, you must check whether your country allows you to own gold. If you have permission to possess gold in your country, you can then proceed. Or, you might consider buying gold overseas.
- You should also know the type of gold coin that you desire. You have options: you can choose from yellow gold, white or rose gold.
- Third, consider the cost of gold. It is best to begin small and work your ways up. It is important to diversify your portfolio whenever you purchase gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Don't forget to keep in mind that gold prices often change. Be aware of the current trends.
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By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: BTC Falls as Global Economic Slowdown Heightens
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-falls-as-global-economic-slowdown-heightens/
Published Date: Fri, 23 Sep 2022 12:47:05 +0000
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