Bitcoin Technical Analysis: BTC’s Subdued Start to the Week Amid US Market Closures

Bitcoin Trading Range on Monday

Monday is expected to be a quiet day for trading due to the observance of Martin Luther King Jr. Day, leading to the closure of the U.S. bond market, Nasdaq, and the New York Stock Exchange (NYSE). Over the past hour, bitcoin has been trading between $42,530 and $42,765 per unit, experiencing a slight decrease of 0.3% over the past 24 hours. Bitcoin's intraday prices have fluctuated between $41,746 and $43,005.

Bitcoin's Upward Trend

An analysis of bitcoin's daily chart reveals a clear upward trend that has been ongoing since late November. This trend is characterized by a series of higher peaks and troughs, with occasional retracements consisting of significant surges and minor declines. The presence of strong trading volumes during days with notable price fluctuations confirms the legitimacy of these price changes, indicating a positive market sentiment.

Neutral Outlook

Oscillators currently show a predominantly neutral outlook, with the relative strength index (RSI) at 51 and the Stochastic at 65. The commodity channel index (CCI) at -71 also indicates a neutral market. These indicators collectively suggest a balanced market with no significant bias towards bullish or bearish conditions, reflecting a state of equilibrium between buyers and sellers.

Short-Term Complexity

A closer look at bitcoin's 4-hour chart reveals increased variability within the overall upward trend. This shorter timeframe shows less distinct trends and more sideways movements, indicating short-term complexity in the pricing trajectory. The recent decline from $49,000 to $41,500 around January 11-12, 2024, suggests increased selling activity or profit-taking, which is important for traders focusing on shorter durations.

Mixed Signals from Moving Averages

Moving averages (MAs) across different periods present a more complex picture. Exponential moving averages (EMAs) for various durations show a mix of bearish and bullish signals, while simple moving averages (SMAs) for the same durations mirror this mixed sentiment. Divergence between EMAs and SMAs, particularly in the 10 and 100-day periods, highlights nuanced investor sentiment and potential shifts in market momentum.

Bullish and Bearish Perspectives

Bull Verdict: The prevailing bullish signals on bitcoin's daily chart, characterized by consistent higher highs and higher lows, indicate strong upward momentum. While oscillators and moving averages suggest a balanced market, the resilience shown at established support levels and significant trading volume reinforce the potential for sustained upward movement.

Bear Verdict: Despite the overall bullish trend on bitcoin's daily chart, the complexities and fluctuations observed in the shorter 4-hour timeframe suggest potential volatility and uncertainty. The neutral stance of oscillators like the RSI and CCI, along with the mixed signals from EMAs and SMAs, highlight a market that may be poised for a downturn.

What are your thoughts on bitcoin's market action on Monday? Share your opinions in the comments section below.

Frequently Asked Questions

Can I have physical possession of gold within my IRA?

Many people wonder if they are allowed to possess physical gold within an IRA account. This is a legitimate concern because it is illegal.

However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.

The problem is that most people aren't aware of how much money they could be saving by putting their precious gold in an IRA.

It's easy to throw away gold coins but not so easy to put them in an IRA. If you decide not to keep your golden in your home, you'll need to pay twice tax. Once for the IRS and once for the state where you live.

There are two ways to lose your gold: pay taxes twice and keep it in your house. So why would you choose to keep it in your home?

You may argue that it is necessary to have the assurance that your gold safe in your home. It is important to store your gold somewhere safer in order to prevent theft.

You shouldn't even leave your gold in your home unless you plan to visit often. If you leave your gold unattended, thieves can easily steal it while you're out of town.

An insured vault is a better choice for gold storage. Then, your gold will be protected from fire, flood, earthquake, and robbery.

One advantage of storing your gold safely in a vault is the fact that you don't have to worry too much about property tax. You will have to pay income taxes on any gains from the sale of your gold.

An IRA is a way to avoid paying taxes on gold. With an IRA, you won't have to pay income tax even though you earn interest on your gold.

Since you aren't required to pay capital gains tax on your gold, you'll have access to the full value of your investment whenever you want to cash it out.

Federally regulated IRAs mean that you won't face any difficulties in transferring your gold to another bank if it moves.

Bottom line: You can have gold in an IRA. Fear of theft is all that holds you back.

Can you keep precious metals inside an 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.

There are two options for him if he wants to diversify. He could buy physical bars of gold and/or silver from a dealer or sell these items back to the dealer at the end of the year. However, suppose he isn't interested in selling back his precious metal investments. In this case, he should hold onto the investments as they are perfect for storing inside an IRA account.

Should you open a Precious Metal IRA

This depends on what your investment goal is and how risk-tolerant you are.

Open an account today if your retirement plan calls for you to withdraw the funds.

This is because precious metals are more likely to appreciate in the future. You also get diversification benefits.

In addition, gold and silver prices tend to move together. This makes them an excellent choice for investors in both assets.

Precious metal IRAs are not recommended for anyone who isn't planning to use their money for retirement and doesn't want any risk.

What are the best ways to choose an IRA.

Understanding the type of account you have is the first step towards finding an IRA that suits your needs. This includes whether you are looking for a traditional IRA or Roth IRA. You should also know how much money your have available to invest.

Next is deciding which provider best suits your needs. Some providers offer both accounts and others only specialize in one.

Last, consider the fees associated to each option. Fees can vary greatly between providers, and may include annual maintenance charges and other fees. A monthly fee may be charged by some providers depending on how many shares your company holds. Others may only charge one quarter.

Which type of IRA works best?

When choosing an IRA, it is important to choose one that suits your lifestyle and goals. It is important to consider whether you want tax-deferred, maximized growth of your contributions, reduced taxes now and paid penalties later, or just avoid taxes.

If you're saving for retirement and don't have much money invested, the Roth option could make sense. It also makes sense if you continue working after age 59 1/2 and expect to pay income taxes on any accounts withdrawals.

If you plan on retiring early, the traditional IRA may be better because you'll likely owe any taxes on the earnings. If you are going to be working beyond 65 years old, the traditional IRA may make more sense because you can withdraw all or part of your earnings without having to pay taxes.

Statistics

You can only purchase gold bars of at least 99.5% purity. (forbes.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)
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)
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)

External Links

How To

How to Buy Gold To Your Gold IRA

Precious metal is used to describe precious metals such as gold, silver (excluding helium), palladium, palladium or osmium), ruthenium, rose, rhenium, ruthenium and others. It refers to any naturally occurring element with atomic numbers 79 through 110 (excluding helium), which is considered valuable because of its rarity and beauty. Gold and silver are the most popular precious metals. Precious metals are used in jewelry, money, industrial goods and art objects.

Due to supply and demand, the price of gold fluctuates every day. There has been a significant demand for precious metals over the past decade as investors look for safe havens in unstable economies. This has resulted in a substantial rise in the prices. Some are concerned about the increased cost of production and have resisted investing in precious materials.

Because it is rare and long-lasting, gold makes a great investment. Gold never loses its value, unlike other investments. Plus, you can buy and sell gold without paying taxes on your profits. You have two options to invest in gold. There are two ways to invest in gold: buy gold bars and coins; or, you can invest directly in gold futures.

Physical gold coins and bars provide immediate liquidity. They are easy to trade and keep. They do not offer any protection against inflation. If you want to protect yourself from rising prices, consider purchasing gold bullion. Bullion is physical gold, which comes in many sizes and shapes. Bullion comes in a variety of sizes, including kilo bars and one-ounce pieces. Bullion is often stored in vaults, which are safe from fire and theft.

Gold futures can be a great way to buy shares rather than actual gold. Futures let investors speculate on the future price of gold. Gold futures allow you to be exposed to its price without owning any physical commodity.

For example, if I wanted to speculate on whether the price of gold would go up or down, I could purchase a gold contract. When the contract expires, my position will either be “long” or “short.” A long contract means I believe the gold price will rise, so I am willing to hand over money now in return for the promise of more money when the contract expires. A shorter contract will mean that I expect the price to fall. I'm happy to accept the money right now in exchange of the promise that I'll make more money later.

I will be paid the specified amount of the contract plus interest after the contract expires. This way I have exposure to the gold's price without having to actually hold it.

Precious metals are a great investment as they are hard to counterfeit. While paper currency can be easily counterfeited simply by printing new notes, precious metals cannot. Because of this, precious metals have traditionally held their value well over time.

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By: Jamie Redman
Title: Bitcoin Technical Analysis: BTC's Subdued Start to the Week Amid US Market Closures
Sourced From: news.bitcoin.com/bitcoin-technical-analysis-btcs-subdued-start-to-the-week-amid-us-market-closures/
Published Date: Mon, 15 Jan 2024 14:05:07 +0000