Bitcoin Sees Uptick in Value
While U.S. equities and precious metals remain flat, bitcoin has seen an uptick in value over the past day. Currently valued at $38,376, with an intraday range stretching from $37,547 to $38,804, bitcoin's market capitalization stands at $750 billion. Over the past 24 hours, bitcoin has gained 1.5% against the U.S. dollar and 5.4% over the fortnight.
Bitcoin Oscillators Analysis
Oscillators for bitcoin (BTC), as of December 1, 2023, show a mix of different signals. The relative strength index (RSI) at 63 indicates a neutral position, while the Stochastic is also neutral at the moment, at 80. The commodity channel index (CCI) stands at 150, suggesting neutrality as well. However, Momentum at 2642 signals positive sentiment contrasting with the moving average convergence/divergence (MACD) level at 909, which shows bearish signals.
Moving Averages Analysis
The moving averages paint a more optimistic picture. Both the exponential moving average (EMA) and simple moving average (SMA) across various timeframes (10, 20, 30, 50, 100, and 200 days) suggest a positive upswing in the cards. Notably, EMAs are higher than their corresponding SMAs, indicating a strong upward trend. The longer-term averages (100 and 200 days) are significantly lower than the current price, further reinforcing the bullish sentiment in the market.
Chart Analysis
The 4-hour chart analysis reveals a consistent uptrend, marked by higher highs and lows, with a notable increase from $25,977 to $38,839. The daily chart analysis aligns with this, showing a strong upward movement over recent months. Potential entry and exit points vary; a pullback to around $36,000 could offer an entry point, with an exit near recent highs or a more conservative entry following a daily close above the resistance level at $38,839.
Bullish Outlook
The current technical analysis of bitcoin (BTC) as of December 1, 2023, strongly leans towards a bullish outcome. The indicators, particularly the moving averages, suggest a robust upward trend. The consistent positive momentum in the market, combined with the reduced supply of Bitcoin and high investor confidence, points to a likely continuation of the upward trajectory.
Bearish Perspective
Conversely, a bearish perspective must also be considered for BTC as of Friday morning Eastern Time. Despite some bullish indicators, the mixed signals from oscillators cannot be overlooked. The neutral RSI and Stochastic, along with the contrasting signals from Momentum and MACD, suggest potential volatility and uncertainty.
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Frequently Asked Questions
What is the best precious-metal to invest?
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 been considered a safe investment, it is not always the most lucrative. If you are looking for quick profits, gold might not be the right investment. If patience and time are your priorities, silver is the best investment.
Gold is the best investment if you aren't looking to get rich quick. If you want to invest in long-term, steady returns, silver is a better choice.
What does a gold IRA look like?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical gold bullion coins anytime. You don't have a retirement date to invest in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. When you die, your gold assets won't be subjected to taxes.
Your gold is passed to your heirs without capital gains tax. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit required for gold bullion coins purchase is $1,000 However, you'll receive a higher interest rate if you put in more.
Taxes will apply to gold that you take out of an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. To open the account, complete Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. You must complete this form within 60 days of opening your account. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made on a regular basis. These rules apply to contributions made directly or through employer sponsorship.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you won't be able purchase physical bullion. This means you can't trade shares of stock and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. This makes it harder to sell them when needed. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
Should You Purchase 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.
Experts believe this could change soon. 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 important things to remember if your goal is to invest in gold.
- Consider first whether you will need the money to save for retirement. It is possible to save for retirement while still investing your gold savings. The added protection that gold provides when you retire is a good option.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each offer varying degrees of security and flexibility.
- Remember that gold is not as safe as a bank account. Your gold coins may be lost and you might never get them back.
Don't buy gold unless you have done your research. And if you already own gold, ensure you're doing everything possible to protect it.
Is buying gold a good option for retirement planning?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The best form of investing is physical bullion, which is the most widely used. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you are looking for cash flow from your investment, buying gold stocks will work well.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
What is a Precious Metal IRA (IRA)?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are sometimes called “bullion.” Bullion refers actually to the metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This allows you to receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
irs.gov
cftc.gov
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Gold Roth IRA guidelines
The best way to invest for retirement is by starting early. It is best to start saving for retirement as soon you can (typically at age 50). It is important to invest enough money each and every year to ensure you get adequate growth.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. They are a great option for those who do not have access to employer matching money.
It's important to save regularly and over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Bulls Break Resistance, Holding Above $38K
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-bulls-break-resistance-holding-above-38k/
Published Date: Fri, 01 Dec 2023 14:15:34 +0000
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