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Bitcoin Technical Analysis: Bulls Eye $38K Amid Stiff Resistance

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Introduction

Bitcoin's price on November 24, 2023, reflects a steady rise in value, standing at $37,903. Over the past 24 hours, BTC has fluctuated between $36,972 and $38,078, with a trading volume of $17.41 billion, signaling strong market activity to end the week. The crypto asset's market capitalization is currently coasting along at $737 billion.

Optimistic Outlook for Bitcoin

The technical indicators present an optimistic outlook for bitcoin (BTC). The oscillators, including the relative strength index at 62 and the Stochastic at 83, currently indicate a neutral stance. However, the commodity channel index at press time at 123 suggests a growing momentum. This combination of readings implies that while the market is not in an overbought or oversold condition, it is gearing up for some more potential price movements.

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Moving averages unanimously signal optimistic sentiment as well. The exponential and simple moving averages across different time frames (10, 20, 30, 50, 100, and 200 days) all suggest an upward trajectory for BTC's price for the time being. This alignment across various time frames points to a strong and sustained bullish trend, reinforcing the positive sentiment among traders.

Encouraging Trend

The 4-hour chart analysis reveals an encouraging trend for bitcoin. The chart shows a recent uptrend marked by higher highs and higher lows. The increase in volume accompanying this uptrend is a sign of strength in the current movement. This pattern is typically indicative of sustained buying interest and could signal further price increases.

Resistance and Support Levels

In terms of resistance and support levels, BTC faces immediate resistance around the recent high of $38,078. Conversely, a significant support level is established at the previous low of around $35,539. These levels are crucial for traders to monitor, as they can offer insights into potential breakout or retracement scenarios.

Entry and Exit Points

For entry and exit points, a potential entry could be around the $37,000 mark, aligning with the latest breakout level. This price point may now act as a support level following its previous role as resistance. In terms of exit strategy, traders might consider taking profits near the recent high of $38,078 or use a trailing stop loss if they anticipate a continuation of the uptrend.

Bull Verdict

The technical analysis for BTC/USD as of November 24, 2023, strongly suggests a bullish trend. The alignment of both oscillators and moving averages indicates a sustained upward momentum. With a consistent pattern of higher highs and higher lows, and a robust market capitalization, the market sentiment leans positively.

Bear Verdict

Despite the current bullish indicators, a bearish outlook cannot be entirely dismissed for BTC as of November 24, 2023. The crypto market is known for its volatility, and a sudden shift in investor sentiment or external economic factors could reverse the current trend. The resistance level near $38,078 might prove to be a significant hurdle, and any failure to breach this could lead to a retracement.

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Frequently Asked Questions

Should You Open a Precious Metal IRA?

The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes any loss of investments from theft, fire, flood or other circumstances.

This type of loss can be avoided by investing in physical silver and gold coins. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.

Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.

You won't get any returns until you retire if you open an account. Keep your eyes open for the future.

How to Open a Precious Metal IRA

The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. You must complete Form 8606 to open an account. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should not be completed more than 60 days after the account is opened. You can then start investing once you have this completed. You could also opt to make a contribution directly from your paycheck by using payroll deduction.

To get a Roth IRA, complete Form 8903. The process for an ordinary IRA will not be affected.

You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS stipulates that you must have earned income and be at least 18-years old. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made on a regular basis. These rules apply to contributions made directly or through employer sponsorship.

An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. But, you'll only be able to purchase physical bullion. This means that you will not be allowed to trade shares or bonds.

Your precious metals IRA may also be used to invest in precious-metal companies. This option is offered by some IRA providers.

An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. This makes them harder to sell when needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.

What precious metals do you have that you can invest in for your retirement?

Silver and gold are two of the most valuable precious metals. Both can be easily bought and sold, and have been around since forever. You should add them to your portfolio if you are looking to diversify.

Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.

Silver: The popularity of silver has always been a concern for investors. It's an ideal choice for those who prefer to avoid volatility. Silver tends instead to go up than down, which is unlike gold.

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Platinium: Another form of precious metal is platinum, which is becoming more popular. It's durable and resists corrosion, just like gold and silver. It's however much more costly than any of its counterparts.

Rhodium: Rhodium can be used in catalytic convertors. It is also used as a jewelry material. And, it's relatively cheap compared to other types of precious metals.

Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. It's a popular choice for investors who want to add precious metals into their portfolios.

Can I keep a Gold ETF in a Roth IRA

A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).

An IRA traditional allows both employees and employers to contribute. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.

An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.

You can also get an Individual Retirement Annuity, or IRA. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs will not be taxed

How much tax is gold subject to in an IRA

The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you sell it later you will have a taxable profit if the price goes down.

Loans can be secured with gold. Lenders seek to get the best return when you borrow against your assets. This usually involves selling your gold. However, there is no guarantee that the lender would do this. They may just keep it. They might decide that they want to resell it. The bottom line is that you could lose potential profit in any case.

You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.

What is a Precious Metal IRA, and how can you get one?

A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.

Precious metals are sometimes called “bullion.” Bullion refers to the actual physical metal itself.

Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.

A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This will ensure that you receive annual dividends.

Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, your gains are subject to a small tax. Additionally, you have access to your funds at no cost whenever you need them.

Statistics

  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • You can only purchase gold bars at least 99.5% purity. (forbes.com)
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)

External Links

bbb.org

law.cornell.edu

cftc.gov

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