Bitcoin Trading Range
Monday is expected to be a quiet day for Bitcoin trading due to the observance of Martin Luther King Jr. Day, which has resulted in the closure of the U.S. bond market, Nasdaq, and the New York Stock Exchange (NYSE). Over the past hour, Bitcoin has been trading in the range of $42,530 and $42,765 per unit, representing a slight 0.3% decrease over the past 24 hours. Intraday prices for Bitcoin have fluctuated between $41,746 and $43,005.
Bitcoin's Upward Trend
An analysis of Bitcoin's daily chart reveals a clear upward trend that has been ongoing since late November. This trend is characterized by a series of higher peaks and troughs, with occasional retracements in the form of significant surges followed by minor declines. The presence of strong trading volumes during periods of price fluctuations confirms the authenticity of these changes, indicating a positive market sentiment.
Oscillators and Market Balance
Oscillators currently show a predominantly neutral outlook, with the relative strength index (RSI) at 51 and the Stochastic at 65. The commodity channel index (CCI) at -71 is also situated in a neutral zone. These indicators suggest a balanced market with no significant bias towards bullish or bearish conditions, reflecting an equilibrium between buyers and sellers.
Bitcoin's Short-Term Complexity
A closer look at Bitcoin's 4-hour chart reveals increased variability within the overarching upward trend. This shorter timeframe shows less distinct trends and more lateral movements, indicating a short-term complexity in the price trajectory. The recent decline from $49K to $41.5K around Jan. 11-12, 2024, highlights increased selling activity or profit-taking, which is important for traders focusing on shorter timeframes.
Moving Averages and Investor Sentiment
Moving averages (MAs) across different periods present a more complex picture. Exponential moving averages (EMAs) for various periods show a mix of bearish and bullish signals, while simple moving averages (SMAs) mirror this mixed sentiment. The divergence between EMAs and SMAs, particularly in the 10 and 100-day periods, indicates nuanced investor sentiment and potential shifts in market momentum.
Bullish and Bearish Outlook
Bull Verdict: The consistent higher highs and higher lows on Bitcoin's daily chart suggest a strong upward momentum. The balanced market indicated by oscillators and moving averages, combined with the resilience at support levels and substantial trading volume, support the potential for sustained upward movement.
Bear Verdict: Despite the overall bullish trend on Bitcoin's daily chart, the complexities and fluctuations observed on the shorter 4-hour timeframe suggest potential volatility and uncertainty. The neutral stance of oscillators like the RSI and CCI, along with the mixed signals from EMAs and SMAs, indicate a market that could be poised for a downturn.
What are your thoughts on Bitcoin's market action on Monday? Share your opinions in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These precious metals are extremely rare and valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion refers simply to the physical metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This ensures that you will receive dividends each and every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay a small percentage tax on the gains. You also have unlimited access to your funds whenever and wherever you wish.
Who holds the gold in a gold IRA?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least 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 on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Should you open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. This includes any loss of investments from theft, fire, flood or other circumstances.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These coins have been around for thousands and represent a real asset that can never be lost. They are likely to fetch more today than the price you paid for them in their original form.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
You won't get any returns until you retire if you open an account. Remember the future.
Can the government take your gold
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs to your. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What is the best way to hold physical gold?
Gold is money. Not just paper currency. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
Gold has historically performed better during financial panics than other assets. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
The best thing about gold investing is the fact that there's virtually no counterparty risk. You still have your shares even if your stock portfolio falls. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. You can buy gold in small amounts because it is so liquid. This allows you to take advantage of short-term fluctuations in the gold market.
Can I keep a Gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
Statistics
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
finance.yahoo.com
cftc.gov
investopedia.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
A growing trend: Gold IRAs
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
The gold IRA allows investors to purchase physical gold bars and bullion. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors to manage their assets without worrying about market volatility. The gold IRA can be used to protect against inflation or other potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
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.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC's Subdued Start to the Week Amid US Market Closures
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btcs-subdued-start-to-the-week-amid-us-market-closures/
Published Date: Mon, 15 Jan 2024 14:05:07 +0000
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