The cryptocurrency market is ablaze with excitement as Bitcoin inches closer to the $28,000 mark. This surge was triggered by the SEC's (Securities and Exchange Commission) decision to refrain from opposing a court ruling in favor of Grayscale Investments. The consequential implication of this ruling is that Grayscale may soon transition its Bitcoin Trust into an ETF (Exchange-Traded Fund). Furthermore, Ethereum also shows promising signs of growth as it nudges towards the $1,600 milestone.
Bitcoin's Market Performance
Bitcoin (BTC) teetered on the brink of breaching the $28,000 threshold on Monday. The market's reaction to the SEC's surprising decision not to challenge the court decision in favor of Grayscale catalyzed this rise. Today's session saw BTC/USD soaring to an impressive peak of $27,968.93, a significant increase from Sunday's low of $26,817.89.
This surge propelled Bitcoin to its highest position since October 9, effectively wiping off all losses incurred in the previous week. However, the cryptocurrency's early gains gradually waned, with the Relative Strength Index (RSI) unable to surpass the resistance level of 60.00.
At the time of writing, Bitcoin's price strength was recorded at 58.98, with the cryptocurrency hovering around the $27,800 mark. Market projections suggest a continued progress towards $28,000 in the upcoming hours and throughout the week.
Ethereum's Market Performance
Ethereum (ETH) also experienced a positive market response at the start of the week, with prices rising for the fourth consecutive session. After hitting a low of $1,550.88 on Sunday, ETH/USD charged towards a peak of $1,588.45 earlier in the day.
This bullish trend was initiated when traders rejected a potential breakout below the support level of $1,540, and instead propelled the cryptocurrency towards a resistance level of $1,590. As the session continues, it is anticipated that the bulls will attempt to breach this resistance level. However, to achieve this, the upcoming resistance level of 48.00 on the RSI will have to be overcome.
At the time of writing, the RSI was tracking at 46.18, slightly below the aforementioned resistance level. The current market sentiment, if sustained, could indicate a promising week ahead for both Bitcoin and Ethereum.
We would love to hear your thoughts on this market analysis. Do you agree with the projected trends for Bitcoin and Ethereum? Let us know in the comments.
Frequently Asked Questions
Are gold and silver IRAs a good idea?
This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. However, there are many other options available as well. Contact us anytime if you have questions about these types investment options. We are always available to assist you!
What are some of the advantages and disadvantages to a gold IRA
A gold IRA is an excellent investment vehicle for those who want to diversify their holdings but don't have access to traditional banking services. It allows you to invest freely in precious metals, such as gold, silver and platinum until they are withdrawn.
The downside is that early withdrawals will result in ordinary income taxes on earnings. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
If you are looking to own gold without worrying about taxes, a golden IRA could be for you.
What is a Precious Metal IRA and How Can You Benefit From It?
Precious metals can be a good investment for retirement accounts. They are a timeless investment that has held its value since the beginning of time. You can diversify your portfolio by investing in precious metals, such as gold, platinum, and silver.
Certain countries even allow their citizens to save money in foreign currencies. You can buy Canadian gold bars and keep them at home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is an easy way to invest precious metals. This is especially helpful if you don't live in North America.
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
How to convert your IRA into a Gold IRA
Do you want to change your retirement savings away from a traditional IRA and into a golden IRA? This article will guide you through the process. This is how you can make the switch.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling over an account has tax benefits. People may also prefer to invest physical assets, such precious metals.
There are two types IRAs – Traditional IRAs (or Roth IRAs). The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. If you invest $5,000 in a Traditional IRA now, then you'll be able only to withdraw $4,000. The Roth IRA would allow you to keep every cent if you invested the same amount.
These are some things to consider if you plan to convert from a Traditional IRA to a Gold IRA.
First, you must decide whether to move your balance into a new bank account or transfer funds from your existing account to the new one. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. You can rollover your IRA to avoid paying income tax until you are 59 1/2.
After making your decision, you can open a new financial account. Most likely, you will need to present proof of identity such as a Social Security Card, passport, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. Once you have completed all the forms, you will submit them to bank. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
This is the fun part. You'll deposit cash into your new account and wait for the IRS to approve your requests. After approval is granted, you will receive a letter saying that you are now allowed to withdraw funds.
That's it! Now all you have to do is sit back and watch the money grow. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
By: Eliman Dambell
Title: Bitcoin and Ethereum Market Analysis: Anticipation Builds as Bitcoin Approaches $28,000 with Potential Grayscale ETF Conversion
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-nears-28000-as-hopes-for-grayscales-etf-rise/
Published Date: Mon, 16 Oct 2023 13:17:01 +0000