After a five-day downward trend, Bitcoin experienced a much-needed resurgence on Friday. The cryptocurrency seems to have found a temporary price floor, as traders adjust to the recent U.S. inflation report, which remained steady at 3.7%. Ethereum also saw a minor uptick, recovering from its recent bearish trend.
Bitcoin (BTC) broke its five-day losing trend on Friday, as market participants continued to adjust to the most recent inflation report from the United States. BTC/USD hit a low of $26,558.32 during Thursday's session and rose to an intraday high of $26,919.04 on Friday. This price rebound came after BTC hit the $26,560 level, which bulls are currently using as a floor.
The long-term support point seems to be at $26,000, but with the relative strength index (RSI) unable to drop below the 45.00 level, the price has yet to reach this zone. At present, the index is at 46.41, having failed to break its 45.00 floor. Despite this, bears may attempt to push the price lower in the coming days.
If the current support level holds, Bitcoin may reenter the $27,000 range this weekend.
Ethereum (ETH) also saw a minor increase today, rebounding from its support level. ETH/USD reached a peak of $1,553.51 during today's trading session, following a low at the $1,523.24 mark the previous day.
The previous day's low was Ethereum's weakest point since March 12, when the price hit its bottom at $1,612. The 10-day (red) moving average continues to cross downward with its 25-day (blue) counterpart, indicating a potential bearish sentiment in the near future.
While the price remains above the $1,535 floor, there is a high chance of a change in the coming days. It remains to be seen how this will play out for Ethereum.
Register your email here to get weekly price analysis updates sent to your inbox: Will bulls be able to resist the current downward pressure? Share your thoughts in the comments below.
Frequently Asked Questions
What are the pros and cons of a gold IRA?
An excellent investment vehicle is a gold IRA. This is for people who wish to diversify but do not have access to traditional banking services. It allows you invest in precious metals like platinum, silver, and gold without any taxes, until they're withdrawn.
The downside is that withdrawing money early will pay ordinary income tax on the earnings. However, these funds are kept outside the country and cannot be seized by creditors if you default.
If you are looking to own gold without worrying about taxes, a golden IRA could be for you.
What are the fees for an IRA that holds gold?
The average annual fee of an individual retirement account is $1,000. There are many types to choose from, such as Roth, SEP, SIMPLE, traditional and Roth IRAs. Each type of IRA has its own rules and requirements. You may be required to pay taxes on earnings earned from investments that aren't tax-deferred. It is important to consider how long you plan on keeping the money. You will save money if you intend to keep your funds longer than a Roth IRA.
A traditional IRA allows you to contribute up to $5,500 per year ($6,500 if you're 50 or older). A Roth IRA gives you the ability to contribute unlimited amounts per year. The difference between them is simple: With a traditional IRA, you can withdraw the money after you retire without paying taxes. With a Roth IRA, however, any withdrawals will be subject to taxes.
How much should your IRA include precious metals
Investing in precious metals such as gold and silver is the best way to protect yourself from inflation. It's not just a way to save money for retirement.
Although gold and silver prices have risen significantly in the past few years they are still considered safe investments. They don't fluctuate quite as much like stocks. These materials are always in demand.
The prices of gold and silver are generally predictable and stable. They tend to rise during economic growth and drop during recessions. This makes them very valuable money-savers and long term investments.
You should invest 10 percent of your total portfolio into precious metals. That percentage could go higher if you want to diversify your portfolio further.
What type of IRA is used for precious metals?
Many financial institutions and employers offer an individual retirement account (IRA) as an investment option. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.
An IRA allows for you to save taxes while still paying taxes when you retire. This means you can save money and pay taxes later on the money that you have deposited to your retirement account.
An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. When you do, there are penalties for early withdrawal.
After age 50, you can make additional contributions to an IRA without penalty. You'll owe income tax and a 10% federal penalty if you withdraw from your IRA in retirement.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. Withdrawals between ages 59 1/2 and 70 1/2 are subject to a 3.4% IRS penalty.
There is a 6.2% penalty for withdrawals over $10,000 per calendar year.
What is a Precious Metal IRA and How Can You Benefit From It?
Precious metals make a great investment in retirement accounts. They are a timeless investment that has held its value since the beginning of time. It is a great way of diversifying your portfolio and protecting against inflation by investing in precious metals like gold, silver, or platinum.
In addition, some countries allow citizens to store their money in foreign currencies. You can buy gold bars in Canada, and then keep them at the home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is a very easy way to invest in precious metals. It's especially useful for anyone who lives outside North America.
Are gold IRAs a good place to invest?
An investment in gold can be made by buying shares of companies that mine it. This is a good way to make money when you invest in gold and other precious metals like silver.
There are however two problems with owning shares directly.
You can lose money if you hold onto your stock too long. Stocks fall faster than their underlying assets (like gold) when they are declining. You could lose your money, rather than make it.
Second, waiting until the market recovers before selling can result in missing potential profits. It is possible to wait until the market recovers before selling your gold.
You can still enjoy the benefits of physical gold if your investments are separate from your finances. A gold IRA will help protect your portfolio from inflation and diversify it.
Visit our website to learn more about gold investment.
Which is more powerful: sterling silver or 14k gold?
While gold and silver are both strong metals but sterling silver is less expensive than silver because it contains 92% pure Silver rather than 24%.
Sterling silver is sometimes called fine silver. This is because it is made with a mix of silver and different metals like copper or zinc.
Gold is generally considered to be very strong. It can only be broken apart by extreme pressure. If you dropped an object on top to a gold piece, it would shatter into thousands rather than breaking into two halves.
However, silver isn't as strong and durable as gold. If you dropped an item onto a sheet of silver, it would probably bend and fold without shattering.
Silver is used in jewelry and coins. Silver's value can fluctuate depending on the supply and demand.
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- Silver must be 99.9% pure • (forbes.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Precious Metals Approved by the IRA
IRA-approved precious metallics are great investments, whether you want to save for retirement and invest in your next venture. Diversifying your portfolio can protect you from inflation with a variety of options, including silver coins and gold bars.
Precious metal investment products come in two main forms. Because they are tangible, physical bullion products like bars and coins can be considered assets. On the other hand, exchange-traded funds (ETFs) are financial instruments that track the price movements of an underlying asset, such as gold. ETFs trade like stocks on stock exchanges, which means investors can buy shares of them directly from the company issuing them.
There are many types of precious metals that you can purchase. Silver and gold are commonly used for jewellery making and decoration. However, platinum and palladium tend to be associated with luxury goods. Palladium is more stable than platinum and therefore better suited for industrial purposes. Although silver is useful for industrial purposes it is preferred for decorative uses.
Due to the higher cost of mining and refining materials, physical bullion items tend to be more expensive. But, they are generally more secure than paper currencies and provide buyers greater security. For example, consumers can lose confidence in the currency or look for alternative currencies when the U.S. dollars loses its purchasing power. In contrast, physical bullion products do not rely on trust between countries or companies. They are backed instead by central banks or governments, providing customers with peace of mind.
According to supply and demand, gold prices can fluctuate. When demand increases, the price rises; conversely, when supply exceeds demand, the price drops. This dynamic creates opportunities for investors to profit from fluctuations in the price of gold. This fluctuation is good news for investors who own physical bullion items as they earn a higher return.
Unlike traditional investments, precious metals cannot be affected by economic recessions or interest rate changes. As long as the demand for gold remains strong, it will continue to rise. Because of this, precious metals are considered safe havens during times of uncertainty.
The most well-known precious metals are:
- Gold – It is the oldest form of precious metallic and is sometimes called “yellow material”. While gold is a well-known element, it is very rare to find underground. Most of the world’s gold reserves can be found in South Africa and Peru, Canada, Russia and China.
- Silver – After gold, silver is the second most precious precious metal. Silver, like gold, is extracted from natural deposits. However, silver is usually extracted from ore and not from rock formations. Due to its durability and conductivity as well as its resistance to tarnishing it is widely used for commerce and industry. The United States makes more than 98% all of the global silver production.
- Platinum – Platinum is the third most valuable precious metal. It can be used in many industrial applications, including fuel cells, catalysts, and high-end medical devices. Platinum is also used in dentistry to make dental crowns, fillings, and bridges.
- Palladium- Palladium, the fourth most precious precious metal, is Palladium. Its popularity is growing rapidly among manufacturers because of its strength and stability. It is used in electronics and aerospace technology, as well as military technology.
- Rhodium – Rhodium is the fifth most valuable precious metal. Although rhodium is extremely rare, it is highly sought after because of its use in automobile catalysts.
- Ruthenium, the sixth most precious precious metal, is Ruthenium. While palladium and platinum are scarce, ruthenium has a large supply. It is used in steelmaking, chemical manufacturing, and engine design.
- Iridium – Iridium is the seventh-most valuable precious metal. Iridium is an important component in satellite technology. It is used to build satellites orbiting that transmit television signals, phone calls, and other communications.
- Osmium- Osmium ranks eighth in the list of most valuable precious metals. Osmium can withstand extreme temperatures and is commonly used in nuclear reactors. It is also used in cutting tools, jewelry, and medicine.
- Rhenium- Rhenium, the ninth most precious precious metal, is Rhenium. Rhenium is used in refining oil and gas, semiconductors, and rocketry.
- Iodine: Iodine, the tenth highest-valued precious metal, is also known as Iodine. Iodine can be used in radiography, photography, and pharmaceuticals.
By: Eliman Dambell
Title: Bitcoin and Ethereum Technical Analysis: BTC Bulls Break 5-Day Downward Trend
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-bulls-end-a-5-day-losing-streak/
Published Date: Fri, 13 Oct 2023 12:49:29 +0000