Bitcoin's Consolidation in a Tight Triangle Pattern
Bitcoin (BTC) has recently been consolidating within a tight triangular pattern after a period of consolidation over the weekend. Despite the range-bound movement, the relative strength index (RSI), a key indicator of price momentum, suggests that bitcoin is still overbought with a reading of 77, indicating the possibility of further price pullbacks.
Bitcoin's Price and Trading Volume
During the past 24 hours, Bitcoin's price has fluctuated between $36,692 and $37,291 per coin. The trading volume for the leading cryptocurrency is currently around $11.63 billion, with a market capitalization of $720 billion. Bitcoin's price is still up by 4.2%, and the 30-day statistics show a rise of 36% against the U.S. dollar.
Stochastic Oscillator and Market Stabilization
The Stochastic oscillator, currently at a neutral 76, is approaching the overbought level. This suggests that bitcoin's upward momentum may be plateauing, and we could see a period of market stabilization or slight corrections as part of the natural ebb and flow of trading patterns.
Commodity Channel Index and Selling Pressure
The commodity channel index (CCI) of 130 further supports the bearish outlook, indicating a tendency towards selling. This aligns with the overbought sentiment suggested by the RSI. When the CCI's readings surpass the typical overbought level of 100, it signifies the potential for a trend reversal.
Moving Averages and Bullish Sentiment
On the other hand, bitcoin's moving averages continue to reflect a bullish trend. The 10-day simple moving average (SMA) and exponential moving average (EMA) stand at $36,133 and $36,232 respectively, indicating an optimistic market sentiment. The longer-term 20 and 30-day averages also support sustained upward momentum, suggesting enduring bullish sentiments.
Bullish and Bearish Outlooks
Based on the prevailing bullish signals from bitcoin's moving averages, the short-term overbought concerns indicated by the RSI may be outweighed. This suggests that the underlying momentum remains strong, and the dip signaled by the RSI could present a buying opportunity before the next upward swing.
However, despite the bullish trends in moving averages, the overbought signals from the RSI and CCI indicate a market that is ripe for a correction.
Register your email here to receive weekly price analysis updates sent to your inbox.
How will Tuesday's CPI report impact crypto markets? Share your thoughts in the comments below.
Frequently Asked Questions
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them highly valuable for both investment and trading. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem 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. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
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.
How much do gold IRA fees cost?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
To diversify your portfolio you might need to pay additional charges. These fees will vary depending upon the type of IRA chosen. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates are often waived if a broker like TD Ameritrade is used.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts where you deposit your own money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. You cannot touch your principal (the amount you originally deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you take out more than the initial contribution, you must pay tax.
The second rule is that you cannot withdraw your earnings without paying income taxes. You will pay income taxes when you withdraw your earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
How much of your IRA should include precious metals?
It is important to remember that precious metals can be a good investment for anyone. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might think about buying physical coins such a bullion bar or round. You could also buy shares in companies that produce precious metals. Your retirement plan provider may offer an IRA rollingover program.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
Are gold investments a good idea for an IRA?
If you are looking for a way to save money, gold is a great investment. It is also an excellent way to diversify you portfolio. But gold has more to it than meets the eyes.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. It's hard to find and very rare, making it extremely valuable.
The supply and demand for gold determine the price of gold. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. Gold's value rises as a result.
The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.
This is why it makes sense to invest in gold for individuals and companies. If you invest in gold, you'll benefit whenever the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Additionally, you won't lose cash if the gold price falls.
Should You Buy Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save for retirement and not invest your savings in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Last but not least, gold doesn't provide the same level security as a savings account. Your gold coins may be lost and you might never get them back.
Do your research before you buy gold. If you already have gold, make sure you protect it.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- (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)
- 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)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
The best way to buy gold (or silver) online
First, understand the basics of gold. Gold is a precious metal similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They are not exchangeable in any currency exchange system. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. The buyer receives 1 gram of gold for every dollar spent.
The next thing you should know when looking to buy gold is where to do it from. If you want to purchase gold directly from a dealer, then a few options are available. First, you can visit your local coin store. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers typically charge 10% to 15% commission on each transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This is a great option for gold investing because you have more control over the item’s price.
Another option for buying gold is to invest in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. Physical gold must be kept safe in an impassible container, such as a vault.
You can either visit a bank, pawnshop or bank to buy gold. A bank can offer you a loan for the amount that you need to buy gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks charge higher interest rates than those offered by pawn shops.
The final option is to ask someone to buy your gold! Selling gold can be as easy as selling. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
By: Jamie Redman
Title: Bitcoin Technical Analysis: Traders Await US Inflation Data as Bitcoin Consolidates in Tight Range
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-traders-anticipate-us-inflation-data-amidst-tight-trading-range/
Published Date: Mon, 13 Nov 2023 12:55:03 +0000