Bitcoin Consolidates Above $42K
Bitcoin has been holding steady above the $42K zone and over the past hour, the leading crypto asset has changed hands for $42,425 to $42,597 on Wednesday morning around 9:30 a.m. Eastern Time. The digital currency's market valuation on Jan. 17, 2024, is around $835 billion with $25.65 billion in global trades over the past day.
1-Hour Chart: Consolidation with Less Directionality
Bitcoin's 1-hour chart presents a scene of consolidation, with BTC's price movements showing less directionality compared to longer timeframes. Notably, there was a sharp decline to approximately $42,056, possibly indicating a purge of stop-loss orders or a brief panic sell-off following the spot bitcoin exchange-traded fund (ETF) approvals. However, the market swiftly recovered from this dip.
4-Hour Chart: Clear Downtrend Signals
The 4-hour chart paints a clearer picture of a downtrend, characterized by lower highs and lower lows. The volume on downswings was notably higher, suggesting stronger selling pressure. Resistance has formed near the $45,000 level, which had previously acted as support. The path of least resistance on Wednesday is clearly the downside as the market still has bearish undertones.
Daily Chart: Confirmation of Longer-Term Downtrend
The daily chart reinforces the longer-term downtrend observed in the 4-hour analysis. A significant long-term support area is holding around $36,727, a level from which the price had previously bounced back considerably. The current price action was confined within a range between this support and the approximate $45K resistance level. For long-term positions, entry points might be considered near the bottom of this range, with confirmation of support holding.
Neutral Oscillators with Bearish Indicators
Bitcoin's oscillators on Jan. 17, 2024, presented a predominantly neutral stance. The relative strength index (RSI) stood at 47, the Stochastic at 17, and the commodity channel index (CCI) at -61, all indicating neutrality. However, the momentum indicator at -1365 and the moving average convergence/divergence (MACD) level at 83 suggests a bearish undertone to the overall neutral outlook.
Mixed Moving Averages: Short-Term Bearish vs. Long-Term Bullish
Bitcoin's moving averages (MAs) also provide mixed signals. Shorter-term exponential moving averages (EMAs) and simple moving averages (SMAs) for 10, 20, and 30 days indicate negative sentiment, while longer-term averages for 50, 100, and 200 days suggest the bullish sentiment is still strong. This disparity highlighted a tension between immediate bearish trends and a potential bullish undercurrent in the longer term.
Bullish vs. Bearish Outlook
Bull Verdict:
Despite the mixed signals and short-term bearish trends, the long-term outlook for BTC remains positive. The resilience shown at major support levels, coupled with the buying interest reflected in the longer-term moving averages, suggests a potential upward trajectory. Investors with a long-term perspective may find this an opportune moment to consider entry, as the market could be gearing up for a bullish reversal.
Bear Verdict:
The bearish indicators dominating the short-term charts point to an ongoing downtrend for bitcoin. The lower highs and lower lows, particularly evident in the 4-hour chart, coupled with stronger selling pressure and bearish oscillator readings, suggest that the market could continue to face downward pressure. Short-term traders might find opportunities in short positions, capitalizing on pullbacks and resistance levels.
What do you think about bitcoin's market action on Wednesday? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What are the benefits of having a gold IRA?
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have total control over how much each year you take out. There are many types to choose from when it comes to IRAs. Some are better suited to college savings. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. However, once they begin withdrawing funds, these earnings are not taxed again. 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. For people who would rather invest than spend their money, gold IRA accounts are a good option.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. It means that you don’t have to remember to make deposits every month. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. Gold is a good option for protecting your savings from inflation.
What precious metals can you invest in for retirement?
These precious metals are among the most attractive investments. They are both simple to purchase and sell, and they have been around for a long time. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is very stable and secure. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. It is an excellent choice for investors who wish to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It is however more expensive than its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also more accessible. This is why it has become a favourite among investors looking for precious metals.
How can I withdraw from a Precious metal IRA?
First, determine if you would like to withdraw money directly from an IRA. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, calculate how much money your IRA will allow you to withdraw. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once you have completed these calculations, you need to open your brokerage account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before you choose one, weigh the pros and cons.
Bullion bars are easier to store than individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some people prefer to keep coins safe in a vault. Others prefer to place them in safe deposit boxes. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
How much of your portfolio should you hold in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. However, the prices of precious metals do not always move in sync with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors expect lower interest rate, making bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. Since these are scarce, they become more expensive and decrease in value.
You must therefore diversify your investments in precious metals to reap the maximum profits. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
What's the advantage of a Gold IRA?
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This makes for an easy transition if you decide to retire early.
The best thing is that investing in gold IRAs doesn't require any special skills. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. Gold has historically been volatile. Understanding why you invest in gold is crucial. Are you looking for safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce doesn't suffice to cover all your needs. Depending upon what you plan to do, you could need several ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even one ounce is enough. But you won't be able to buy anything else with those funds.
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts think this could change quickly. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
These are some things you should consider when considering gold investing.
- First, consider whether or not you need the money you're saving for retirement. You can save for retirement and not invest your savings in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each one offers different levels security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. Losing your gold coins could result in you never being able to retrieve them.
If you are thinking of buying gold, do your research. Make sure to protect any gold you already own.
What are the fees associated with an IRA for gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance fees and investment costs for your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- 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)
- 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)
- 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)
External Links
investopedia.com
irs.gov
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
cftc.gov
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. Because of its intrinsic value, it was also widely traded. There were different measures and weights for gold, as there was no standard to measure it. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This caused a drop in foreign currency demand which resulted in an increase of their prices. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. The U.S. government needed to find a solution to their debt because there was too much money in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The price of gold rose significantly over the years. 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 Balances Above $42,000 Amidst Downtrend Signals
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-balances-above-42000-amidst-downtrend-signals/
Published Date: Wed, 17 Jan 2024 14:48:44 +0000
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