Bitcoin made a significant leap towards the $28,000 mark on Monday, as the market responded to the Securities and Exchange Commission's (SEC) decision not to contest the Grayscale ruling. This decision implies that Grayscale might soon transition its bitcoin trust into an exchange-traded fund (ETF). Meanwhile, Ethereum made strides towards the $1,600 mark today.
Bitcoin (BTC) was on the verge of breaching the $28,000 mark on Monday. This rise was a reaction to SEC's decision not to dispute a court verdict in favor of Grayscale.
During Monday's session, BTC/USD rose to a high of $27,968.93, following a low of $26,817.89 on Sunday.
Today's surge saw Bitcoin reach its highest value since October 9, thereby compensating for all the losses incurred last week.
However, the initial gains dwindled later, with the relative strength index (RSI) unable to exceed a resistance level of 60.00.
At the time of writing, the price strength stands at 58.98, with Bitcoin lingering around the $27,800 mark.
It is anticipated that traders will continue their push towards the $28,000 mark in the coming hours and throughout the week.
Ethereum (ETH) started the week on a positive note, with prices rising for the fourth consecutive session.
After hitting a low of $1,550.88 on Sunday, ETH/USD soared to a high of $1,588.45 earlier in the day.
The ongoing bullish trend began after traders dismissed a drop below a support level of $1,540, and instead aimed for a resistance level at $1,590.
It is expected that the bulls may attempt to break this resistance as the session continues. However, to achieve this, an imminent resistance of 48.00 on the RSI needs to be surpassed.
At the time of writing, the index stands at 46.18, which is slightly below the aforementioned resistance level.
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Do you think the current market sentiment will persist throughout the week? Share your thoughts in the comments section below.
Frequently Asked Questions
What are the benefits of having a gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. It is tax-deferred until it's withdrawn. You can decide how much money you withdraw each year. And there are many different types of IRAs. Some are better suited for people who want to save for college expenses. Others are intended for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. These earnings don't get taxed if they withdraw funds. This account is a good option if you plan to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. 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.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. It means that you don’t have to remember to make deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one the most secure investment options available. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
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. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. Only one month's rent is required.
It is also important to decide what kind of business you want to run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
Is physical gold allowed in an IRA.
Gold is money and not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. If your stock portfolio goes down, you still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. This means you can easily sell your gold any time, unlike other investments. You can buy gold in small amounts because it is so liquid. This allows you to take advantage of short-term fluctuations in the gold market.
How do you withdraw from an IRA that holds precious metals?
You first need to decide if you want to withdraw money from an IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. You'll have to weigh the pros of each option before you make a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. But you will have to count each coin separately. You can track their value by keeping individual coins.
Some people like to keep their coins in vaults. Some people prefer to store their coins safely in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Are gold investments a good idea for an IRA?
Anyone who is looking to save money can make gold an excellent investment. It is also an excellent way to diversify you portfolio. There is much more to gold than meets your eye.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. If the economy is strong, people will spend more money which means less people can mine gold. The value of gold rises as a consequence.
On the flipside, people may save cash rather than spend it when the economy slows. This means that more gold is produced, which reduces its value.
It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
You'll also earn interest on your investments, which helps you grow your wealth. Plus, you won't lose money if the value of gold drops.
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
- Fraud Advisory: Precious Metals Fraud
By: Eliman Dambell
Title: Technical Analysis of Bitcoin and Ethereum: BTC Approaches $28,000 with Increasing Expectations of Grayscale's ETF
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-nears-28000-as-hopes-for-grayscales-etf-rise/
Published Date: Mon, 16 Oct 2023 13:17:01 +0000