Bitcoin's Price Movements on December 4
On December 4, 2023, the price of bitcoin experienced significant fluctuations, ranging between $39,409 and $42,155 throughout the day. This surge in price allowed bitcoin to surpass the $42K mark, a level not seen since the Terra LUNA crash. Currently, bitcoin's market capitalization stands at approximately $813 billion, with each unit trading at $41,556 at the time of writing.
Bitcoin's Technical Indicators
At present, bitcoin's relative strength index (RSI) sits at 85, indicating a balanced position. The Stochastic, on the other hand, reads 89, suggesting a slightly bearish signal following the breach of the $42K level. The commodity channel index (CCI) remains neutral at 229. Bitcoin's movement is well-supported by various moving averages, all of which point towards positive market sentiment.
Bitcoin's Moving Averages
The exponential moving averages (EMAs) and simple moving averages (SMAs) for 10, 20, 30, 50, 100, and 200 days range from $38,893 to $40,284, consistently favoring the current upward trend. The recent tap of the $42K level was accompanied by high trading volume during a modest sell-off and lower volume during consolidation, suggesting a temporary but significant shift in market dynamics.
Contrasting Views on the 4-hour Chart
The 4-hour chart presents a different perspective, showing a sustained uptrend characterized by a series of higher highs and higher lows, which is typically considered a bullish sign. The highest peak on the 4-hour chart aligns with the short-term resistance level, and volume spikes during upward movements further support the current optimistic market sentiment. Traders may consider potential entry points during pullbacks and observe reversal patterns with high volume as potential exit points, indicating a possible end to the current trend.
Based on a comprehensive analysis, bitcoin's market outlook on December 4 leans predominantly bullish. The alignment of various moving averages suggests a strong upward trend, and longer-term charts confirm this sentiment through a series of higher highs and higher lows.
Conversely, the analysis of bitcoin on December 4 can also be viewed from a bearish standpoint. The overbought conditions indicated by the RSI and the significant selling pressure observed in the short-term chart analysis indicate a potential market exhaustion.
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Frequently Asked Questions
Can you keep precious metals inside an IRA
This question is dependent on whether an IRA owner wishes to diversify into gold or silver, or keep them safe.
If he does want to diversify, then there are two options available to him. He could either purchase physical bars or silver from a seller, or return these items to the dealer at end of the year. He doesn't wish to sell any of his precious metal investments. In that case, he should continue holding onto them as they would be perfectly suitable for storing within an IRA account.
What is the most valuable precious metal?
Investments in gold offer high returns on their capital. It protects against inflation as well as other risks. As people worry about inflation, the price of gold tends increase.
It is a smart move to purchase gold futures. These contracts will guarantee that you will receive a specific amount of gold at an agreed price.
However, futures on gold aren't for everyone. Some prefer physical gold.
They can easily exchange their gold with other people. They can also easily sell it whenever they like.
Some people would rather not pay tax on their gold. People buy gold directly from the government in order to avoid paying taxes.
This process requires you to make several trips to your local post office. You will first need to convert any existing gold in coins or bars.
Then, you need to get a stamp on those coins or bars. Then, send them to the US Mint. There they will melt the coins or bars into new ones.
These bars and coins are stamped with the original stamps. They are therefore legal tender.
The US Mint will not tax gold purchased directly.
So, which precious metal would you like to invest in?
How much do gold IRA fees cost?
The average annual fee to open an individual retirement account (IRA), is $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type of IRA has its own rules and requirements. If you don't have tax-deferred investments, then earnings may need to be taxed. Also, consider how long the money will be kept. 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 lets you contribute unlimited amounts each year. The difference between them? With a traditional IRA, the money can be withdrawn at your retirement without tax. With a Roth IRA, however, any withdrawals will be subject to taxes.
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (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)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to Open a Precious Metal IRA
Precious metals remain one of the most highly-valued investment options. Precious metals have a higher return than traditional investments like bonds or stocks, which is why they are so sought-after. However, you need to be careful when investing in precious materials. Here's how to open a precious-metal IRA account.
There are two main types of precious metal accounts: physical precious metals accounts and paper gold and silver certificates (GSCs). Each type has advantages and drawbacks. GSCs can be traded and access physical precious metals accounts, which offer diversification benefits. Keep reading to find out more about these options.
Physical precious Metals accounts consist of bullion, bullion, and bars. This option offers diversification benefits but also has some drawbacks. You will need to pay a lot of money for precious metals, whether you are buying, selling, or storing them. They can also be very difficult to transport due to their large size.
The silver and paper gold certificates are also relatively affordable. These certificates can also be traded online, and they are easy to access. This makes them ideal for people who don't want to invest in precious physical metals. But, they're not as well-diversified as physical counterparts. Also, since they're backed by government agencies such as the U.S. Mint, the value of these assets could decrease if inflation rates rise.
When opening a precious metallic IRA, make sure to choose the right account for you and your financial situation. Before doing so, consider the following factors:
- Your tolerance level
- Your preferred asset allocation strategy
- How much time do you have to invest
- No matter if you intend to use the funds in short-term trading.
- What tax treatment do you prefer?
- What precious metal(s), would you like to invest?
- How liquid should your portfolio be?
- Your retirement date
- Where to store precious metals
- Your income level
- Your current savings rates
- Your future goals
- Your net worth
- Consider any special circumstances that could affect your decision
- Your overall financial position
- Your preference between paper and physical assets
- Your willingness to accept risks
- Your ability to deal with losses
- Your budget constraints
- Your desire to be financially independent
- Your investment experience
- Your familiarity with precious metals
- Your knowledge about precious metals
- Your confidence with the economy
- Your personal preferences
After you've decided on the best type of precious metal IRA for you, you can start to open an accounts with a reputable broker. These companies are often found by word of mouth referrals or online research.
Once you have opened your precious-metal IRA, it is time to decide how much you want to deposit. You should note that every precious metal IRA account has a different minimum deposit amount. Some accounts only require $100, while others may allow you up to $50,000.
As mentioned above, you can decide how much money you want to invest in your precious metal IRA. A higher initial deposit will help you build wealth over a prolonged period. A lower initial deposit may be better if you plan to invest smaller amounts of money each month.
As far as the actual precious metals used in your IRA go, you can purchase any number of different types of investments. These are the most commonly used:
- Bullion bars. Rounds, and gold coins.
- Silver – Rounds or coins
- Platinum – Coins
- Palladium Round and Bar Forms
- Mercury – Round and bar forms
By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Breaks $42K Resistance in Latest Bullish Swing
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btc-breaks-42k-resistance-in-latest-bullish-swing/
Published Date: Mon, 04 Dec 2023 13:00:05 +0000