Bitcoin, Gold, Silver: Updated Price Outlook as Stock Market Calm Returns
This week, prices for Bitcoin, gold, and silver are sporting bullish trends, basking in the afterglow of the Federal Reserve’s recent interest rate cut decision. As the dust settles from the Fed’s quarter-point decrease, it has become clear that the U.S. stock market is shedding its previous anxieties, a change not observed since early October.
Stock Market Resilience Post-Fed Rate Cut
With the U.S. stock market reaching an all-time high on December 11, analysts have become increasingly optimistic about future movements. The Fed’s decision to lower interest rates generally stimulates the stock market by reducing borrowing costs. This results in improved corporate profits and boosted consumer spending as businesses and consumers find themselves in a more favorable credit environment. Investors, in search of better returns, are also shifting their focus from bonds to equities, further increasing market momentum.
This improved liquidity and heightened risk appetite have created an environment where the stock market is no longer signaling fear—a significant shift that has influenced the performance of alternative assets, namely Bitcoin, gold, and silver.
Bullish Reversal Builds for Bitcoin Price as Liquidity Flows Return
On the Bitcoin front, recent daily chart analyses reveal a bounce back within a clearly defined ascending channel after a sharp correction from early October. While Bitcoin currently trades below its critical exponential moving averages—50 and 100, positioned at $96,583 and $101,943 respectively—there are early signs of trend stabilization. This can be seen through a series of higher lows forming, a hallmark of a potential recovery.
The Bullish Volume Profiles indicate a significant high-volume cluster around the 78.6% Fibonacci retracement level at $90,358, suggesting that this level is fundamental support that bulls could defend. A decisive candlestick close above this level may pave the way for Bitcoin to target a heavier liquidity area between $98,000 and $103,000.
Despite the favorable technical indicators, the Relative Strength Index (RSI) remains neutral, implying potential for volatility in either direction. The Awesome Oscillator’s histogram is moving toward positive territory, hinting at increasing bullish momentum. However, continued upward traction hinges on maintaining the upward channel structure—breaking this could expose Bitcoin to bearish pressure, potentially sending it down into the $86,000 to $80,600 range.
Gold Price’s Breakout Momentum Strengthens Above Key Resistance
Turning to gold, the XAU/USD trading pair has recently shown signs of a breakout from a long-established symmetrical triangle. After a $490 retracement earlier this quarter, this pattern usually serves as a continuation signal in an uptrend. Gold’s current position above the downtrend line signifies momentum, with a projected measured move suggesting an upside target of approximately $4,720—more than 11% above the breakout point.
Gold is now stabilizing around the $4,273 mark—above the triangle’s upper boundary—keeping bullish prospects alive. Traders eyeing long positions may consider waiting for a successful retest of this trendline. The RSI, while at a comfortable 65, suggests that gold remains poised for further upward movement without being overbought. Furthermore, the MACD lines crossing into bullish territory amplify the likelihood of continued upward pressure.
With rising geopolitical uncertainties, ongoing inflation expectations, and strong central bank gold purchases, the structural conditions support the case for a retest and possibly new highs in gold prices.
Silver Price’s Long-Term Cup-and-Handle Signal Targets Major Upside
Lastly, silver is exhibiting one of the strongest long-term bullish structures in commodities, illustrated by a multi-cycle Cup & Handle breakout. Encompassing peaks from 1980 to the rejections in 2011, this structure shows an impressive 871% measured move potential. The smaller handle pattern made between 2011 and 2024 offers a 152% measured move, both converging around a key breakout level of $36, a formidable barrier for over 40 years.
Recent market activity indicates a high-volume breakout well above this historical resistance, signifying a potential structural shift. When commodities like silver breach long-term ceilings, price discovery can accelerate rapidly as historical resistance levels dissipate.
While the RSI is currently in overbought territory, such signals in long-term breakouts often reflect strong momentum rather than a precursor to fatigue. The MACD has also crossed into a bullish formation, confirming ongoing upward trends. If this breakout maintains its momentum, the next psychological milestone could be situated around $70, with the historical high zone, which previously hovered near $50, transitioning into a new support floor.
Silver’s historical volatility may necessitate a retest around the $36 mark before it truly embarks on a sustained upward journey. With tight supply constraints and a decade-long consolidation phase, the prospects for silver to revisit and possibly exceed its historical highs remain distinctly plausible.
The readings for Bitcoin, gold, and silver set the stage for exciting movements as market conditions evolve, driven by broader economic shifts and investor sentiment.
