Bitcoin's Recent Price Swing
Between November 16 and 17, 2023, bitcoin (BTC) experienced a significant shift in its value, with its price swinging from $35,579 to $37,904 within a 24-hour period. Currently, the market has stabilized, and bitcoin is trading at $36,387 per unit.
Current Market Status
As of November 17, 2023, bitcoin is hovering around $36,387 after a day of fluctuating trade. The relative strength index (RSI) is currently at 60, indicating a balanced and calm market. The exponential moving average (EMA) and simple moving average (SMA) are generating a mix of sell and buy signals across different timeframes.
Market Analysis
Prior to Friday's market activities, bitcoin showed an upward trend, indicating increased buyer interest on Thursday. However, when the price approached the $37,975 mark, it experienced a significant drop, suggesting either a corrective phase or a potential trend reversal. The current market dynamics suggest a cautious and optimistic approach to trading strategies for the upcoming weekend.
Trading Opportunities
There may be opportunities to initiate long positions if bitcoin's price breaks decisively above the recent consolidation peak, especially if it surpasses $36,500. It is crucial to look for an increase in trading volume to confirm such movements. For long trades, it is advisable to aim for an exit near the previous peak of $37,975, as this level could act as a resistance zone.
On the other hand, if the price fails to maintain its position above the consolidation figures, a short position with a target near the previous support level of $35,000 could be considered. The market's moderate confidence reflects its underlying strength, but caution is necessary due to the possibilities of consolidation or reversal. Although there have been brief periods of stability, the market can quickly transition into periods of significant fluctuations.
Bullish Outlook
Despite its volatility, bitcoin's performance on November 17, 2023, leans towards a positive trend. The day's high of $37,904 and the closing price above the key psychological level of $36,000 indicate a resilient bullish sentiment.
Bearish Outlook
The bearish perspective on Bitcoin's performance on November 17, 2023, is based on its significant price fluctuations and failure to sustain gains above critical resistance levels. The wide range of the trading day and the closing price below the day's high point to potential exhaustion among buyers.
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What are your thoughts on bitcoin's market action on Wednesday? Share your opinions and insights in the comments section below.
Frequently Asked Questions
What are the pros & con's of a golden IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. There are some disadvantages to this investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more costly than gold futures. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does NOT include theft protection and loss due to fire or flood. It does offer coverage for natural disasters. You may consider adding additional coverage if you live in an area at high risk.
You should also consider the cost of storage for your gold. Storage costs will not be covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians can't sell assets. Instead, they must maintain them for as long a time as you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. You should also specify how much you want to invest each month.
After filling in the forms, please send them to the provider. Once the company has received your application, they will review it and send you a confirmation email.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What proportion of your portfolio should you have in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. They do not always move in the same direction. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Is gold a good investment IRA option?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It's been used as a form of payment throughout history. It is often called “the most ancient currency in the universe.”
But gold is mined from the earth, unlike paper currencies that governments create. This makes it highly valuable as it is hard and rare to produce.
Gold prices fluctuate based on demand and supply. The economy that is strong tends to be more affluent, which means there are less gold miners. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Plus, you won't lose money if the value of gold drops.
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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
External Links
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
irs.gov
How To
Tips to Invest in Gold
Investing in Gold has become a very popular investment strategy. This is due to the many benefits of investing in gold. There are many options for investing in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before you buy any type of gold, there are some things that you should think about.
- First, verify that your country permits gold ownership. If so, then you can proceed. If not, you may want to consider purchasing gold from overseas.
- Second, it is important to know which type of gold coin you are looking for. You can go for yellow gold, white gold, rose gold, etc.
- Thirdly, you should take into consideration the price of gold. Start small and move up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversify your investments in stocks, bonds or real estate.
- Last but not least, remember that gold prices fluctuate frequently. You need to keep up with current trends.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: Breaking Through the $38K Resistance Level
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-38k-resistance-level-holds-btc-back/
Published Date: Fri, 17 Nov 2023 12:13:43 +0000
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