Bitcoin's price stabilizes near $43,654, indicating a period of consolidation in the market. While oscillators suggest a neutral to bearish stance, moving averages indicate a strong buying trend, creating a complex situation for investors.
Bitcoin Price Stability
Currently, bitcoin is trading at $43,654 and fluctuating between the range of $43,049 and $43,840. This stability suggests a balanced market, but underlying factors hint at potential fluctuations in the near future. With a market capitalization of $854 billion and a 24-hour trading volume of $25.31 billion, bitcoin's impact on the crypto market is undeniable.
The relative strength index (RSI) sits at 63, the Stochastic at 37, and the commodity channel index (CCI) at 17. These key oscillators, which are crucial for detecting market momentum and possible reversals, collectively point towards a neutral to slightly bearish stance. They imply that BTC is in a state of equilibrium, lacking clear indicators of being overbought or oversold.
Bullish Outlook Supported by Moving Averages
Both exponential (EMA) and simple moving averages (SMA) across multiple time frames (10, 20, 30, 50, 100, 200) provide a unanimous bullish signal for BTC. These averages, ranging from $43,423 to $37,812, indicate ongoing buying interest and suggest a potential uptick in price.
The daily chart shows a clear uptrend, with BTC rising from about $35,002 to approximately $44,490. Although the consolidation period may indicate indecision, the overall trend remains bullish. However, the decreasing trading volume raises caution and suggests a potential decrease in buying interest, requiring traders to remain vigilant.
On the 4-hour chart, BTC appears to be consolidating within the range of $43,000 to $44,000. The presence of small red and green candlesticks reflects the current balance of power between buyers and sellers, emphasizing short-term market ambiguity. For investors leaning towards bullishness, a breakout above the consolidation zone, accompanied by increased volume, could present an ideal entry point.
Alternatively, more cautious approaches may involve waiting for a dip to the $40,000 – $42,000 zone. In terms of exit strategies, setting a stop loss just below $43,000 could help reduce risk, while considering profit-taking near the recent peak of $44,490 is advisable.
The current market indicators, along with the sustained buying pressure indicated by the moving averages, strongly favor a bullish scenario for Bitcoin. The consistent uptrend on the daily chart, coupled with the potential breakout above the current consolidation range, suggests an optimistic future for BTC.
Conversely, the neutral readings from key oscillators such as the RSI, Stochastic, and CCI indicate a potential cooling off in the Bitcoin market. The presence of smaller-bodied candles and decreasing trading volume on the daily chart could be precursors to a downward trend.
Register your email here to receive weekly price analysis updates directly to your inbox.
What are your thoughts on bitcoin's market action on Friday morning? Share your opinions in the comments section below.
Frequently Asked Questions
Can I buy gold using my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. You can only hold physical bullion, which is real silver and gold bars.
What is a gold IRA account?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase physical bullion gold coins at any point in time. You don't have to wait until retirement to start investing 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 heirs can inherit your gold and avoid capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reporting.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit is $1,000. However, you'll receive a higher interest rate if you put in more.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. You could end up with severe financial consequences.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you cannot touch your principal (the original amount deposited). This means that you can't take out more money than you originally contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's further assume you earn $10,000 annually after contributing. You would owe $3,500 in federal income taxes on the earnings. The remaining $6,500 is yours. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Can I have physical gold in my IRA
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.
Many Americans today prefer to invest in precious metals, such as silver and gold, over 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.
Another reason is that gold has historically outperformed other assets in financial panic periods. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During these turbulent market times, gold was among few assets that outperformed the stocks.
One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold is liquid. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
How is gold taxed in an IRA?
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
You can use gold as collateral to secure loans. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. There's no guarantee that the lender will do this. They might just hold onto it. They might decide that they want to resell it. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
How do I open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should not be completed more than 60 days after the account is opened. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS stipulates that you must have earned income and be at least 18-years old. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. And, you have to make contributions regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option can be provided by some IRA companies.
There are two major drawbacks to investing via an IRA in precious metals. First, they're not as liquid as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
What does gold do as an investment?
The supply and the demand for gold determine how much gold is worth. Interest rates can also affect the gold price.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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)
- (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)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's not exactly legal – WSJ
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How to Keep Physical Gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You also have a lower chance of theft than stocks.
There are however some disadvantages. You won't be able to benefit from investment funds or interest rates offered by banks. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman may ask you about where you have put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
By: Jamie Redman
Title: Bitcoin Technical Analysis: A Lull in Bullish Activity as BTC Enters Consolidation
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-a-lull-in-bullish-activity-as-btc-enters-consolidation/
Published Date: Fri, 08 Dec 2023 13:30:36 +0000