Bitcoin, gold, and silver have quickly adjusted upwards on Tuesday, ahead of the day when the Fed is expected to cut interest rates again.
This pioneering cryptocurrency, along with safe-haven assets such as gold and silver, may face volatility around the Fed's interest rate decision. Even though the price of XAG assets has recently broken 60 USD/ounce for the first time in history, it has already risen by +108% in 2025.
Price targets for BTC, XAU, and XAG before the U.S. Federal Reserve cuts interest rates.
All eyes are on the Fed's interest rate decision tomorrow and Jerome Powell's subsequent press conference, which is considered the most important macro event for Bitcoin and safe assets this week.
Data from the CME FedWatch Tool shows that investors are betting on interest rates, predicting a 87.6% chance that the Fed will decide to cut rates.
Generally, when the Fed lowers interest rates, it tends to support Bitcoin as it injects liquidity into the financial market, with gold usually benefiting clearly and quickly. Silver, in most cases, responds more slowly than gold at first but reacts much more strongly when there is a significant economic recovery, leading to rapid rebounds in silver prices after the Fed cuts rates and momentum accumulates.
Gold responds faster and is more predictable.
Bitcoin benefits when liquidity expands
Money often wins in momentum during the late stages
Nevertheless, considering the current price situation, the market seems to have already priced in this event, as traders have opened positions in anticipation of the high likelihood of a rate cut.
Bitcoin surged to USD 100,000 before the U.S. Federal Reserve decides on interest rates.
The price of Bitcoin moves strongly in an upward direction and has consolidated in an upward parallel channel since the lowest price of 80,600 USD on November 21. As long as the price remains within this range, the opportunity for further upward movement is still open for Bitcoin.
If looking at the RSI (Relative Strength Index) indicator, it shows that momentum is continually rising, which can support BTC to move forward. When the RSI is above the 50 line, it indicates strong buying power. However, it still needs to be monitored, as this midpoint level is often at risk of being pulled back by selling pressure as well.
The price of Bitcoin is currently facing immediate resistance, as the 50-day exponential moving average (EMA) is at 97,015 USD, which is a significant obstacle on BTC's path to the most critical Fibonacci retracement level of 61.8% at 98,018 USD.
Thus, this level is considered an important entry point for late bulls. If the price of Bitcoin clearly breaks through this level with strong trading volume, it will signal that the trend is becoming even stronger, and such conditions will give pioneering digital assets a chance to rise to 103,399 USD, which is the midpoint of 50%.
However, in a clearly bullish case, BTC can touch the Fibonacci retracement level at 38.2%, indicating a very strong trend.
On the other hand, if the resistance at the Fibonacci retracement level of 61.8% is strong, it may signal a trend reversal.
If sellers decide to sell at the current level, it may cause the support at the Fibonacci retracement level of 78.6% to break down, which may lead BTC to break from the upward trend in the parallel channel.
Such a trend change could result in the price of pioneering crypto finding a support level at 80,600 USD, indicating a correction of about 15% from the current level.
Gold may be in a classic accumulation phase A.
The price of gold may be sold down to a low of 4,199 USD and may break the upward trend line before recovering. For the RSI, momentum is decreasing, which puts the price of XAU at risk of a correction.
However, with the RSI still above the 50 threshold and strong support from the 50 and 100-day EMA at 4,202 USD and 4,203 USD respectively, prices have a high chance of recovering.
The key support is in the range of 4,178 USD to 4,192 USD. If this zone remains strong, the bullish structure will remain.
Meanwhile, the main resistance is at 4,241 USD, and if it can clearly break through this resistance level, it will trigger rapid buying.
In this same directional trend, the next target will be at 4,260 USD, or in the case of a very strong bullish market, it may touch 4,300 USD before having a chance to retest the all-time high (ATH) of 4,381 USD again.
Therefore, the current price level may be a classic reload point, while every pullback is a buying opportunity for late bulls.
The price of silver has increased six times that of the S&P 500 since the beginning of the year.
The price of silver is currently in one of the most intense bullish phases in stock market history, having increased by six times the YTD return of the S&P 500. The price of silver XAG/USD is heading towards a peak increase in the last 12 months since 1979.
After reaching a new all-time high of 60.794 USD, the price of silver is currently searching for the next price level, with a chance to adjust higher.
On the 15-minute chart below, the price of silver XAG/USD shows a clear bullish breakout pattern. The price of silver successfully broke through the previous resistance around 58.83 USD and soared to find new prices, confirming the transition from accumulation to expansion.
All important EMA lines (50/100/200) are stacked upwards and pointing higher, clearly reflecting the direction and strength of the short-term trend.
Momentum supports this rise, with the RSI above 73 indicating strong buying. However, this position of the RSI also warns that the market may be too hot in the short term and is at risk of cooling down or consolidating before moving higher.
Structurally, the previous resistance at 58.80–59.00 USD has become the first support, while the next psychological and technical target is around 61.00–61.50 USD.
As long as the price of silver stays above the rising 50-EMA (red), the market outlook still emphasizes buying on dips, and the downside risk will increase only if the price falls below 59.00 USD consistently.
