Bitcoin (BTC) experienced a notable shift in value between November 16 and 17, 2023, with a price swing from $35,579 to $37,904 within a 24-hour period. Currently, the market activity has stabilized, and bitcoin is trading at $36,387 per unit.
The Current State of Bitcoin
As of November 17, 2023, bitcoin is hovering at $36,387 after a day of fluctuating trade. The relative strength index (RSI) is currently at 60, indicating a balanced market posture. The exponential moving average (EMA) and simple moving average (SMA) are showing a mix of sell and buy signals across different timeframes.
Before the recent market activities, bitcoin displayed an upward trend, indicating increased buyer interest on Thursday. However, after reaching a high near $37,975, the price experienced a significant drop, suggesting a corrective phase or a potential trend reversal. The current market dynamics suggest a cautious and optimistic approach to trading strategies for the weekend.
Opportunities for Long and Short Positions
If bitcoin's price decisively breaks above its recent consolidation peak, particularly crossing $36,500, there may be opportunities to initiate long positions. Confirmation of such movements should ideally come with an increase in trading volume. For long trades, aiming for an exit near the previous peak of $37,975 is advisable, considering it as a possible resistance zone.
On the other hand, if the price fails to maintain its position above the consolidation figures, a short position with a target near the prior support level of $35,000 could be considered. The market's moderate confidence reflects its underlying strength but also emphasizes the need for prudence due to the possibilities of consolidation or reversal. While there have been moments of calm, the market can quickly transition into periods of significant fluctuations.
Bullish and Bearish Perspectives
Despite its volatility, Bitcoin's performance on November 17, 2023, leans towards a positive trend. The day's high of $37,904 and the closing price above the key psychological level of $36,000 suggest a resilient bullish sentiment.
The bearish perspective on Bitcoin's performance on November 17, 2023, is rooted in its significant price fluctuations and failure to sustain gains above critical resistance levels. The wide range of the trading day and the closing below the day's high point to potential exhaustion among buyers.
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What are your thoughts on bitcoin's market action on Wednesday? Share your opinions in the comments section below.
Frequently Asked Questions
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.
It is generally believed that gold is very strong. It takes a lot of pressure to break it down. If you were to drop an object on top of a piece of gold, it would shatter into thousands of pieces instead of 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. The price of silver can fluctuate according to supply and demande.
What precious metals are allowed in IRA?
The most common precious metallic used in IRA accounts, is gold. Gold bullion coins and bars are also available as investments.
Precious Metals are safe investments since they don’t lose value over the long-term. They are also a great way of diversifying your investment portfolio.
Precious metallics include platinum, silver and palladium. These three metals all have similar properties. Each metal has its own use.
For instance, platinum can be used in jewelry manufacturing. You can create catalysts with palladium. Silver is used to producing coins.
Think about how much you can afford to purchase your gold, before you make a decision on the precious metal. It may be more cost-effective to purchase gold at lower prices per ounce.
You should also think about whether you want to keep your investment private. If you are unsure, palladium is the right choice.
Palladium has a higher value than gold. It is also more rare. So you'll likely have to pay more for it.
When choosing between gold or silver, another important aspect is the storage fees. Gold is stored by weight. If you have larger amounts of gold to store, you will be charged more.
Silver is measured in volume. You'll pay less if you store smaller quantities of silver.
You should follow all IRS rules if you plan to store precious metals in an IRA. This includes keeping records of transactions and reporting them back to the IRS.
What are the fees for an IRA that holds gold?
The average annual fee to open an individual retirement account (IRA), 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. If your investments are not tax-deferred, you might have to pay taxes on the earnings. You must also consider how long you want to hold onto the money. If you are planning to hold onto your money for a longer time, you will likely save more money opening a Traditional IRA than a Roth IRA.
Traditional IRAs allow you to contribute up $5,500 annually ($6,500 if 50+). A Roth IRA lets you contribute unlimited amounts each year. The difference between the two is simple. A traditional IRA can be withdrawn after retirement without any taxes. With a Roth IRA, however, any withdrawals will be subject to taxes.
How to Open a Precious Metal IRA
An IRA to hold precious metals can be opened by opening a Roth Individual Retirement Account (IRA) that is self-directed.
This account is more advantageous than other types of IRAs, because you don’t have to pay taxes on any interest earned from your investments until they are withdrawn.
People who are looking to save money and still need a tax break will find it attractive.
You do not have to only invest in gold and silver. You can put your money in almost any item that meets the IRS guidelines.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
There are many examples: palladium; platinum; rhodium; osmium; iridium; ruthenium.
There are several ways you can invest in precious metals. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins & Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion is a general term that describes physical ounces, or physical gold and silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.
You will receive a tangible piece if history, for example. Each coin and each bar have a story.
You'll often find that the face value of a coin is far lower than its nominal value. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. Today, however, the American eagle's price is closer to $40.00 per an ounce.
Bullion has seen a dramatic rise in value since its introduction. Many investors would rather buy bullion coins or bullion bars than futures contracts.
Another option for people who are interested in buying precious metals is to invest in shares of mining corporations. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
In return, you will receive dividends based on the company's profits. These dividends will be used to pay shareholders.
In addition, you will benefit from the growth potential of the company. As the demand for the product grows, the company's share price should increase.
These stocks can fluctuate in value so it is important to diversify your portfolio. This means you can spread your risk to multiple companies.
It's important to remember, however, that mining companies can still be subject to financial losses, just as any other stock market investment.
If gold prices drop dramatically, your ownership share could be worthless.
The Bottom Line
Precious metals, such as silver and gold, can be a refuge during economic uncertainty.
Both silver and gold are subject to extreme price swings. If you are interested in long-term investing in precious metals, open a precious Metals IRA account at a reputable firm.
You can enjoy tax benefits while still owning tangible assets.
Are you able to keep precious metals in your IRA?
The answer to this question depends on whether the IRA owner wants to diversify his holdings into gold and silver or keep them for safekeeping.
He has two options if he wishes to diversify. He could either purchase physical bars or silver from a seller, or return these items to the dealer at end of the year. Let's say he doesn’t want to sell back his precious metal investment. In such a case, he should not sell his precious metal investments. They would be perfect for storing in an IRA account.
- 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)
- 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)
- Silver must be 99.9% pure • (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)
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to Decide if a Gold IRA Is Right for You
Individual Retirement account (IRA), is the most widely used type of retirement plan. IRAs can also be purchased through banks, mutual funds, financial planners, and other institutions. Individuals are allowed to contribute up to $5,000 each year to IRAs without having to pay tax consequences. This amount can go into any IRA. There are limitations on the amount of money that you can contribute to certain IRAs. For example, if your age is less than 591/2 years old, you can't contribute to a Roth IRA. For those who are younger than 50, contributions can only be made after you turn 70 1/2. In addition, some people who work for their employer may be eligible for matching contributions from their employer.
There are two main types of IRAs: Traditional and Roth. A traditional IRA lets you invest in stocks, bonds, real estate, and other investments, while a Roth IRA lets you invest only in after-tax dollars. Contributions to a Roth IRA aren't taxed when they come out, but withdrawals taken from a Roth IRA are taxed once again. Some people combine both of these accounts. Each type of IRA comes with its own pros and cons. There are pros and cons to each type of IRA. Here are three things to keep in mind:
Traditional IRA Pros
- Each company has its own contribution options
- Employer match possible
- Save more than $5,000 per Person
- Tax-deferred growth up to withdrawal
- You may have income restrictions
- Maximum annual contribution is $5,500 ($6,500 for married couples filing jointly).
- Minimum investment: $1,000
- After the age of 70 1/2, mandatory distributions must be taken.
- You must be at the least five years of age to open an IRA
- Cannot transfer assets from IRAs
Roth IRA Pros
- Contributions are exempt from taxes
- Earnings grow without paying taxes
- Minimum distribution not required
- The only options for investing are stocks, bonds, or mutual funds
- There is no maximum contribution limit
- Transfer assets between IRAs is possible without restrictions
- Open an IRA if you are 55 years or older
It is important to understand that not all companies offer the exact same IRAs when opening a new IRA. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others will give you the option to combine them. It is also important to note that different types IRAs will have different requirements. Roth IRAs don't have a minimum capital requirement. Traditional IRAs only require a $1,000 minimum investment.
The bottom line
The key factor in choosing an IRA account is whether you wish to pay taxes now, or later. If you are retiring within ten year, a traditional IRA could be the right option. Otherwise, a Roth IRA could be a better fit for you. Either way, it's always a good idea to consult a professional about your retirement plans. An expert can advise you on the best options and how to navigate the market.
By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC Faces Resistance at $38K Level
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-38k-resistance-level-holds-btc-back/
Published Date: Fri, 17 Nov 2023 12:13:43 +0000