Bitcoin's Price Movements on December 4, 2023
On December 4, 2023, bitcoin experienced significant price movements, trading between $39,409 and $42,155 throughout the day. Notably, the cryptocurrency briefly surpassed the $42K zone, reaching a height that had not been seen since the Terra LUNA crash. As of the time of writing, bitcoin's current market capitalization stands at approximately $813 billion, with a trading price of $41,556 per unit.
Bitcoin's Technical Indicators
Bitcoin's relative strength index (RSI) currently stands at 85, indicating a balanced stance. The Stochastic oscillator reads 89, suggesting a slightly bearish signal following the $42K mark. The commodity channel index (CCI) remains at a neutral level of 229. These indicators, combined with various moving averages, indicate a positive outlook for bitcoin's movement in the market.
Support from Moving Averages
Bitcoin's movement is strongly supported by exponential moving averages (EMAs) and simple moving averages (SMAs) for different timeframes. The EMAs and SMAs for 10, 20, 30, 50, 100, and 200 days range from $38,893 to $40,284, consistently favoring the current upward trend. This reinforces the positivity observed in the market.
Market Dynamics and Trading Strategies
After reaching the $42K mark, the market experienced a modest sell-off with lower volume during consolidation. This suggests a temporary but significant shift in market dynamics. However, the 4-hour chart presents a different view, indicating a sustained uptrend with a series of higher highs and higher lows, which is typically considered a bullish sign.
For trading strategies, potential entry points could be identified during pullbacks, while exit points might be considered when reversal patterns with high volume emerge, signaling a possible end to the current trend.
Bullish Outlook
Considering the comprehensive analysis of bitcoin's market performance on December 4, a predominantly bullish outlook emerges. The alignment of various moving averages indicates a strong upward trend, which is further reinforced by the series of higher highs and higher lows observed in longer-term charts.
Bearish Perspective
Conversely, the analysis can also be interpreted with a bearish perspective. The overbought conditions suggested by the RSI and the significant selling pressure observed in the short-term chart analysis indicate potential market exhaustion.
What are your thoughts on bitcoin's market action on Monday morning? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
What precious metal is best for investing?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. Gold may not be right for you if you want quick profits. If you have the patience to wait, then you might consider investing in silver.
Gold is the best investment if you aren't looking to get rich quick. Silver might be a better investment option if steady returns are desired over a long period of time.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: The popularity of silver has always been a concern for investors. It is an excellent choice for investors who wish to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It is also cheaper. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How much is gold taxed under a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules governing these accounts vary by state. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. You can delay until April 1st in Massachusetts. New York offers a waiting period of up to 70 1/2 years. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
cftc.gov
investopedia.com
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
3 Ways to Invest Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. You might also be interested to invest in gold outside the workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. 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:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, cash in your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having 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.
- Diversify your Portfolio – Don't put all your eggs in one basket. This is how you spread your wealth. You can invest in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
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By: Jamie Redman
Title: Bitcoin Price Analysis: Bullish Outlook with Strong Market Support
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-breaks-42k-resistance-in-latest-bullish-swing/
Published Date: Mon, 04 Dec 2023 13:00:05 +0000
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