Bitcoin Magazine
Insights into Bitcoin's Weekly Performance
Isn't it incredible how quickly things can change in the world of Bitcoin? Last week was a rollercoaster ride, with a slight pullback followed by a significant dip triggered by Trump's tariff talks with China. Despite the chaos, Bitcoin managed to close the week at $115,128 after hitting a low of $105,617.
Current Support and Resistance Levels
Last week's plunge tested various support levels, ultimately finding stability near $105,000. For Bitcoin bulls, holding above this mark is crucial. A breach could lead to further support checks at $96,000, potentially signaling an end to the current bullish trend.
Technical Analysis and Price Predictions
By analyzing Fibonacci Retracement levels, we can anticipate potential price movements. Breaking above the 0.618 Fibonacci Retracement at $118,350 could pave the way for higher highs, especially if Bitcoin surpasses the 0.786 Fibonacci Retracement at $121,800.
Forecast for the Upcoming Week
After a sharp rebound, Bitcoin's short-term trajectory remains uncertain. Oscillators suggest a bearish bias, but there's still hope for bulls. To maintain momentum, Bitcoin must avoid dropping below the 0.236 Fibonacci Retracement level at $110,500.
On the flip side, bears aim to keep prices below the 0.618 Fibonacci Retracement resistance at $118,350. Bitcoin's position between $112,000 and $118,350 will determine the market sentiment, with $115,630 serving as a pivotal point.
Market Sentiment: Bearish sentiments prevail post-Friday's market turmoil. While Bitcoin recovered from the lows, bullish control remains uncertain, requiring further efforts to shift the narrative.
Looking Ahead
Last week's price drop aligned with the lower trend line of a broadening wedge pattern, hinting at potential upward movement. However, vigilance is essential as breaching the lower trend line could trigger a downward spiral towards $80,000. Reclaiming the upper trend line at $127,000 could reignite bullish momentum.
Bulls must tread cautiously, avoiding retests near $105,000 and striving to reclaim levels above $122,000.
Understanding Key Terms
Bulls/Bullish: Investors anticipating price hikes.
Bears/Bearish: Traders expecting price declines.
Support/Resistance Levels: Critical price points influencing asset movement.
Fibonacci Retracements & Extensions: Ratios reflecting natural growth and decay cycles.
Broadening Wedge Pattern: A chart pattern indicating price volatility and potential trend shifts.
Oscillators: Technical tools gauging overbought or oversold conditions.
Frequently Asked Questions
Is the government allowed to take your gold
You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It is yours. However, there may be some exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
How much should you have of gold in your portfolio
The amount of money you need to make depends on how much capital you are looking for. Start small with $5k-10k. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. Rent is only paid per month.
It is also important to decide what kind of business you want to run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You might get paid only once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k of gold and growing from there.
Is buying gold a good way to save money for retirement?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion bars are the most popular way to invest in gold. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow to finance your investment, then gold stocks could be a good option.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
Is it possible to hold a gold ETF within a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity is also possible. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions made to IRAs are not taxable.
What are the benefits of a Gold IRA?
It is best to put your retirement money in an Individual Retirement Account (IRA). It's tax-deferred until you withdraw it. You control how much you take each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Others are intended for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. The earnings earned after they withdraw the funds aren't subject to any tax. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. That means you won't have to think about making deposits every month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one of the safest investment choices available today. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil the gold price tends to remain fairly stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
How much is gold taxed under a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. 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 that govern these accounts differ from one state to the next. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you to wait until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Due to limited supplies, gold prices are subject to volatility. Physical gold is not always in stock.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- 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)
- 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
finance.yahoo.com
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
Investing gold vs. stocks
It might seem risky to invest in gold as an investment vehicle these days. This is because many people believe gold is no longer financially profitable. This belief arises because most people believe that the global economy is driving down gold prices. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. Below are some of them.
Gold is the oldest known form of currency. There are records of its use going back thousands of years. It has been used as a store for value by people all over the globe. As a means of payment, South Africa and many other countries still rely on it.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. So, although gold prices have declined in recent years, the cost of producing it has not changed.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. If you plan to do so as long-term investments, it is worth looking into. You can profit if you sell your gold at a higher price than you bought it.
We hope you have gained a better understanding about gold as an investment tool. It is important to research all options before you make any decision. Only then will you be able to make an informed decision.
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