Bitcoin experienced significant price movements on December 4, 2023, trading between $39,409 and $42,155 throughout the day. The cryptocurrency briefly surpassed the $42K mark, reaching a level not seen since the Terra LUNA crash. As of now, Bitcoin has a market capitalization of approximately $813 billion and is trading at $41,556 per unit.
Bitcoin's Relative Strength
Currently, Bitcoin's relative strength index (RSI) is at 85, indicating a balanced stance. The Stochastic reading is 89, suggesting a slightly bearish signal after reaching the $42K mark. The commodity channel index (CCI) is currently at 229, remaining neutral. Bitcoin's movement is well-supported by various moving averages, all indicating positivity in the market.
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. After reaching $42K, the high volume associated with the modest sell-off and lower volume during consolidation suggest a temporary yet strong shift in market dynamics.
4-Hour Chart Analysis
Contrasting the daily chart, the 4-hour chart shows a sustained uptrend with a series of higher highs and higher lows, indicating a bullish sign. The highest peak on the 4-hour chart aligns with the short-term resistance level, and volume spikes on upward movements support the current market optimism. Potential entry points for trading strategies could be identified during pullbacks, while exit points might be considered upon noticing reversal patterns with high volume, signaling a possible end to the current trend.
Bullish Outlook
Based on the comprehensive analysis on December 4, Bitcoin's market outlook appears predominantly bullish. The alignment of various moving averages indicates a strong upward trend, with longer-term charts reinforcing this sentiment through a series of higher highs and higher lows.
Bearish Perspective
On the other hand, the analysis on December 4 can also be interpreted with a bearish perspective. The overbought conditions suggested by the RSI and the significant selling pressure observed in the short-term chart analysis indicate potential market exhaustion.
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What are your thoughts on Bitcoin's market action on Monday morning? Share your opinions in the comments section below.
Frequently Asked Questions
How is gold taxed in Roth IRA?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules governing these accounts vary by state. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. You can delay until April 1st in Massachusetts. New York offers a waiting period of up to 70 1/2 years. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Who has the gold in a IRA gold?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
To find out what options you have, consult an accountant or financial planner.
How much gold do you need in your portfolio?
The amount of capital that you require will determine how much money you can make. You can start small by investing $5k-10k. As your business grows, you might consider renting out office space or desks. This will allow you to pay rent monthly, and not worry about it all at once. It's only one monthly payment.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. You should also consider the expected income from each client when you do this type of thing.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
How much should precious metals make up your portfolio?
This question can only be answered if we first know what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
In general, prices for precious metals tend increase with the overall marketplace. That said, they do not always move in lockstep with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. They become less expensive and have a lower value because they are limited.
Diversifying across precious metals is a great way to maximize your investment returns. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so 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
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
