Bitcoin Witnesses Notable Price Swing
Between November 16 and 17, 2023, bitcoin (BTC) experienced a significant shift in value, with its price swinging from $35,579 to $37,904 within a 24-hour period. Currently, the market activity has stabilized, and bitcoin is trading at $36,387 per unit.
Bitcoin's Current Market Position
On November 17, 2023, bitcoin (BTC) is hovering at $36,387 after a day of fluctuating trade. The relative strength index (RSI) is currently at 60, indicating a balanced and calm market posture. The exponential moving average (EMA) and simple moving average (SMA) are showing a combination of sell and buy signals across different timeframes.
Potential Trading Strategies
Prior to the recent market activities, bitcoin displayed an upward trend, indicating increased buyer interest on Thursday. However, reaching a high near $37,975 triggered a significant drop, suggesting either a corrective phase or a potential trend reversal. The current market dynamics suggest a cautiously optimistic approach to trading strategies for the upcoming weekend.
If bitcoin's price successfully breaks above its recent consolidation peak, particularly if it surpasses $36,500, it may present opportunities for initiating long positions. Confirmation of such movements should ideally be accompanied by an uptick in trading volume. For long trades, it would be prudent to aim for an exit near the earlier peak of $37,975, considering this level as a possible 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 may be considered. The market's moderate confidence reflects its underlying strength but also emphasizes the need for caution, considering the possibilities of consolidation or reversal. Although there have been brief moments of calm, the market can quickly transition into periods of significant fluctuations.
Bullish and Bearish Perspectives
Bull Verdict: Despite the 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.
Bear Verdict: The bearish perspective on bitcoin's performance on November 17, 2023, is based on its significant price fluctuations and inability to sustain gains above critical resistance levels. The wide range of the trading day and the closing below the day's high suggest 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
How Do You Make a Withdrawal from a Precious Metal IRA?
You first need to decide if you want to withdraw money from an IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option will require you to pay taxes on the amount that you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, you'll need to count every coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep their coins in a vault. Others prefer to store their coins in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
How is gold taxed in an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. Gold is not subject to tax when it's purchased. It is not income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
For loans, gold can be used to collateral. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. There's no guarantee that the lender will do this. They may just keep it. They might decide to sell it. You lose potential profits in either case.
To avoid losing money, only lend against gold if you intend to use it for collateral. If you don't plan to use it as collateral, it is better to let it be.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You might be required to buy insurance that covers losses up to $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the number of ounces of gold that you can own. Others let you choose your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. They allow you to set up a contract with a specific expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance doesn't cover storage costs. For safekeeping, banks typically charge $25-40 per month.
You must first contact a qualified custodian before you open a gold IRA. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians cannot sell your assets. Instead, they must hold them as long as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. The plan should also include information about how much you are willing to invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
A financial planner is a good idea when opening a gold IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads. Example. And Risk Metrics
3 Ways to Invest in Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. You might also consider investing in gold outside your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, invest in cash. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins can be sold much faster than paper certificates. You don't have to store physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. In other words, spread your wealth around by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
By: Jamie Redman
Title: Bitcoin Technical Analysis: $38K Resistance Level Holds BTC Back
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-38k-resistance-level-holds-btc-back/
Published Date: Fri, 17 Nov 2023 12:13:43 +0000