Bitcoin Price Fluctuations
In the wake of bitcoin's 15th anniversary, the cryptocurrency behemoth is facing a challenging market terrain. Bitcoin's price experienced a dip of 6.7%, falling to a range between $42,350 and $42,619. This decline comes amidst swirling rumors of spot bitcoin exchange-traded fund (ETF) rejections.
Bitcoin Market Data
Over the past day, bitcoin's price fluctuated between $41,804 and $45,813. The cryptocurrency currently boasts a market capitalization of $832 billion and a trading volume of approximately $35.96 billion. When analyzing the oscillators and moving averages, there is a diverging sentiment. While the momentum and moving average convergence/divergence (MACD) level suggest bearish action, there is a strong bullish signal from the exponential and simple moving averages, particularly over longer periods (50, 100, and 200 days).
Technical Analysis
A closer look at the technical indicators reveals a neutral stance in the relative strength index (RSI), Stochastic, commodity channel index (CCI), average directional index, and awesome oscillator. However, the selling pressure is evident with negative momentum and MACD level. The moving averages predominantly display bullish sentiment, especially in longer time frames, indicating an underlying optimistic undercurrent.
Daily Chart Analysis
The daily chart tells a dramatic story, showcasing a significant uptrend followed by a precipitous decline. The recent large daily red candle signifies strong selling pressure. This decline was preceded by a consolidation phase, likely an accumulation before a sell-off. The transition from bullish to prominent bearish flags signals a reversal, marking an exit point just before the decline.
4-Hour Chart Analysis
Zooming into the 4-hour chart, the recent price surge followed by a steep downturn becomes evident. This granularity provides clearer entry and exit points. An upward trend confirmation serves as a green light for entry, while an ideal exit is at the peak or as the downturn forms, breaking below the previous low, indicating a momentum shift.
1-Hour Chart Analysis
The 1-hour chart offers an acute perspective of the rapid price fall, characterized by a large dip during the day. This granularity is particularly beneficial for short-term traders seeking quick trades within consolidation phases. The exit strategy aligns with the 4-hour chart, emphasizing the break below the support level from previous areas as a cue to avoid further downturns.
Bullish Outlook
Despite recent downturns and market volatility, the longer-term moving averages and certain oscillators suggest an underlying bullish sentiment. If the market can leverage this period of consolidation as a springboard, coupled with significant historical support levels holding firm, there is potential for an upward trajectory. As bitcoin celebrates its 15th anniversary, the innovative spirit and growing adoption could catalyze a resurgence, especially if external factors like ETF approvals turn favorable.
Bearish Outlook
The sharp decline indicated in the daily and shorter-term charts, accompanied by negative momentum and MACD levels, paints a worrisome picture for bitcoin. The selling pressure and break below key psychological and technical support levels suggest a continuation of the bearish trend. If external market forces, such as the potential rejection of spot bitcoin ETFs, materialize negatively, it could further erode investor confidence and lead to a sustained downturn. In this light, the current market conditions might be seen as a precursor to more significant losses, warranting a cautious approach for those looking to preserve capital.
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Frequently Asked Questions
Is gold a good investment IRA?
Gold is an excellent investment for any person who wants to save money. You can also diversify your portfolio by investing in gold. There's more to gold that meets the eye.
It has been used as a currency throughout history and is still a popular method of payment. It's sometimes called “the world's oldest money”.
But unlike paper currencies, which governments create, gold is mined out of the earth. This makes it highly valuable as it is hard and rare to produce.
The supply and demand factors determine how much gold is worth. The economy that is strong tends to be more affluent, which means there are less gold miners. The value of gold rises as a consequence.
On the flip side, people save cash for emergencies and don't spend it. This causes more gold to be produced, which lowers its value.
This is why it makes sense to invest in gold for individuals and companies. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some things you should consider when considering gold investing.
- Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each offers varying levels of flexibility and security.
- Remember that gold is not as safe as a bank account. It is possible to lose your gold coins.
So, if you're thinking about buying gold, make sure you do your research first. If you already have gold, make sure you protect it.
What does a gold IRA look like?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.
Your gold is passed to your heirs without capital gains tax. Your gold is not part of your estate and you don't have to include it in the final estate report.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
You will pay taxes when you withdraw your gold from your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You have total control over how much each year you take out. There are many types available. Some are better suited to college savings. Others are intended for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. These earnings don't get taxed if they withdraw funds. This account may be worth considering if you are looking to retire earlier.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. It means that you don’t have to remember to make deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it's not tied to any particular country, its value tends to remain steady. Even during economic turmoil, gold prices tend to stay relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
cftc.gov
How To
A growing trend: Gold IRAs
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
The gold IRA allows owners to invest in physical gold bullion and bars. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.
Investors can manage their assets with a gold IRA without worrying about market volatility. The gold IRA can be used to protect against inflation or other potential problems.
Physical gold is also a great investment option, as it has unique properties like durability, portability, divisibility, and portability.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC 15th Anniversary Celebrations Marred by Market Mayhem
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-15th-anniversary-celebrations-marred-by-market-mayhem/
Published Date: Wed, 03 Jan 2024 14:30:56 +0000
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