Bitcoin Price Movement on December 4, 2023
On December 4, 2023, the price of bitcoin experienced significant fluctuations, trading between $39,409 and $42,155 throughout the day. It briefly surpassed the $42K level, a height not seen since the Terra LUNA crash. At the time of writing, bitcoin is trading at $41,556 per unit, with a market capitalization of approximately $813 billion.
Bitcoin's Technical Indicators
Currently, bitcoin's relative strength index (RSI) stands at 85, indicating a balanced stance. The Stochastic reading is at 89, suggesting a slightly bearish signal after reaching the $42K mark. The commodity channel index (CCI) is at 229, remaining neutral. Bitcoin's movement is strongly supported by various moving averages, all pointing towards positivity in the market.
Moving Averages and Market Dynamics
The exponential moving averages (EMAs) and simple moving averages (SMAs) for 10, 20, 30, 50, 100, and 200 days range from $38,893 to $40,284, consistently favoring the current upward trend. After reaching $42K, the high trading volume during the modest sell-off and lower volume during consolidation indicate a temporary yet significant shift in market dynamics.
Contrasting Views on the 4-Hour Chart
The 4-hour chart presents a different perspective, showing a sustained uptrend characterized by a series of higher highs and higher lows, which is a bullish sign. The highest peak on the 4-hour chart aligns with the short-term resistance level, and volume spikes during upward movements support the current market optimism. Traders can consider potential entry points during pullbacks and identify reversal patterns with high volume as potential exit points.
Bullish Outlook
Based on the comprehensive analysis of bitcoin on December 4, a predominantly bullish outlook is warranted. The alignment of various moving averages signals a strong upward trend, and longer-term charts further strengthen this sentiment through a series of higher highs and higher lows.
Bearish Perspective
Conversely, the analysis of bitcoin on December 4 can also be interpreted with a bearish perspective. The overbought conditions indicated by the RSI and the significant selling pressure observed in the short-term chart analysis suggest potential market exhaustion.
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What are your thoughts on bitcoin's market action on Monday morning? Share your opinions and insights in the comments section below.
Frequently Asked Questions
Can I have physical gold in my IRA
Gold is money, not just paper currency or coinage. 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. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans now invest in precious metals. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. You still have your shares even if your stock portfolio falls. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold offers liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. The liquidity of gold makes it a good investment. This allows you to take advantage of short-term fluctuations in the gold market.
What are the benefits to having a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It's not subject to tax until you withdraw it. You can decide how much money you withdraw each year. And there are many different types of IRAs. Some are better suited for college students. Others are intended for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. This eliminates the need to constantly make deposits. You could also set up direct debits to never miss a payment.
Finally, gold remains one of the best investment options today. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
Who holds the gold in a gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” 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.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
What Precious Metals Can You Invest in for Retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among 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 durable and resists corrosion, just like gold and silver. It's however much more costly than any of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used in jewelry-making. It is also very affordable in comparison to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
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)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
finance.yahoo.com
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. It was also traded internationally due to its high value. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This led to a decline in demand for foreign currencies, which caused their price to increase. The United States began minting large quantities gold coins at this time, which led to a drop in the price. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They sold some of their excess gold to Europe to pay off the debt.
Many European countries began accepting gold in exchange for the dollar because they did not trust it. However, after World War I, many European countries stopped taking gold and began using paper money instead. Since then, the price of gold has increased significantly. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Breaks $42K Resistance in Latest Bullish Swing
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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