The prices of Bitcoin, gold, and silver continue to trend upwards this week. The aforementioned cryptocurrency and the two commodity safe havens are reacting to the Fed's interest rate decision while looking to the past.
After the decision by policymakers to cut interest rates by a quarter percentage point, the data shows that the stock market no longer exhibits fear – the biggest change since early last October.
Bitcoin, gold, silver: updated price outlook as stock market calm returns.
The U.S. stock market reached an all-time high on Thursday, December 11. Analysts predict upward development. This is a result of the Fed's interest rate cut, which typically boosts stock markets.
Lower borrowing costs boost corporate earnings, encourage companies to invest, and increase the value of future profits. Cheaper credit also raises consumer spending, while investors shift from bonds to stocks in hopes of higher returns.
Together, this improves liquidity and risk appetite, which elevates stock prices across several sectors. For this reason, the stock market no longer shows fear.
At the same time, Bitcoin, gold, and silver exhibit similar optimism, as both XAU and XAG prices rise with declining investment costs and increasing inflation expectations.
A bullish reversal is building for Bitcoin's price as liquidity investments return.
Bitcoin's daily chart shows the price clearly returning within a confined upward channel formed after a strong decline from early autumn peaks.
Although the price is still below significant exponential moving averages (50 and 100 are at 96,583 and 101,943), BTC is already showing signs of early-stage stabilization. Each new low is higher than the previous one, which is typical of the beginning of a recovery pattern.
Rising Volume Profiles bars (green horizontal bars) indicate a strong volume peak at the 78.6% Fibonacci level, suggesting that bulls may defend $90,358 as a key support.
This level can serve as a focal point for price development and possibly as a starting point for the next upward movement.
A strong candle close above $90,358 could allow BTC to target a larger liquidity zone at $98,000–$103,000.
The RSI (Relative Strength Index) indicator is at a neutral level, indicating that there is room for movement in both directions.
AO indicator histograms are approaching positive territory and flashing green. This suggests growing upward sentiment.
However, the continuation of the short-term rise requires maintaining an upward channel. If the price falls below the channel's lower boundary and the 78.6% Fibonacci level, namely $90,358, BTC is exposed to selling pressure. A sell-off could drop the price between $86,000 and $80,600.
The biggest challenge remains the reclaiming of EMA levels, particularly the 50 and 100-day, which are positioned at 96,583 and 101,943.
Historically, BTC's development accelerates when it breaks these moving averages during consolidation phases.
Overall, BTC appears to be experiencing a controlled pullback, volume is rising, and the channel structure is constructive, but actual confirmation will only be seen if bulls reclaim the psychological level of $100,000.
The sentiment of gold price breakout strengthens above a key resistance level.
The four-hour chart of the XAU/USD pair shows that the price of gold is aiming for a breakout from a long, contracting symmetrical triangle pattern. This technical formation emerged after a strong $490 (-11.19%) pullback earlier in the quarter.
Symmetrical triangles at the peak of an upward trend often act as continuation patterns, where price tightens before continuing in the previous direction. Gold's breakout corresponds to this script, as the price broke the downtrend line with strong sentiment.
The measured rise of the triangle targets upwards to about $4,720 – an increase of just over 11% from the breakout point.
The price of gold is currently stabilizing around $4,273, where the breakout candle closed. As long as gold stays above the triangle's upper boundary, the upward structure remains strong.
Traders considering XAU/USD long positions should wait for a successful retest of the upper trend line.
The RSI is at a neutral level but tilting upwards (65), indicating that gold is not yet overbought. The trend is upward, which generally supports continuation.
The MACD (Moving Average Convergence Divergence) lines have crossed positively and are diverging – this is a sign of increasing upward pressure.
Support levels to watch are $4,180, $4,140, $4,098, and deeper at $3,998, marking the previous correction's low. As long as the price of gold remains above these levels, bulls maintain their grip.
The rise in gold is related to a broader macro trend: geopolitical uncertainty is increasing, persistent inflation expectations, and strong demand from central banks.
Technically, the structure indicates that recent peaks may be revisited and possibly exceeded.
Silver price: the long-term cup-and-handle pattern indicates significant upward movement.
The price of silver demonstrates one of the strongest long-term upward structures in commodities on a multi-decade chart: a massive multi-cycle Cup & Handle breakout structure.
The cup extends from the 1980 peak to the 2011 rejection, with a movement of 871%. The handle is smaller but still strong, forming between 2011 and 2024, indicating a 152% movement. Both shapes converge on the same breakout line near $36, a level silver has not successfully broken through in over 40 years.
The latest candle shows a clear, high-volume breakout above this resistance level, indicating a structural change, not just a temporary spike.
When a commodity breaks through a multi-decade ceiling, the search for price can accelerate rapidly due to the absence of historical resistance levels.
However, the RSI is in the overbought territory (above 80), but in long-term breakout situations, this often reflects sentiment, not exhaustion. The MACD has clearly crossed into the bullish zone, reinforcing the upward trend.
If the breakout holds, the next significant psychological level is $70. The all-time high from 1980/2011, around $50, is now support.
Due to prolonged consolidation and several years of tight supply constraints, movement above historical peaks cannot be ruled out in silver markets.
However, silver has historically been very volatile, so a retest of the $36 area would be normal before a sustainable upward movement.
