Price Predictions for Bitcoin, Gold, and Silver as Stocks Gain Stability

Bitcoin, gold, and silver prices are showing positive trends this week as the leading cryptocurrency and two precious metals reflect the recent interest rate decision by the Federal Reserve.

Key Takeaways

Bitcoin, gold, and silver prices are rebounding as the Federal Reserve cuts interest rates.
The US stock market is reaching new heights, impacting investor sentiment positively.
Bitcoin shows signs of recovery and needs to hold above $90,358 to target $98,000–$103,000.
Gold is breaking out from a symmetrical triangle, with potential upside to $4,720.
Silver displays strong bullish patterns, possibly surpassing historical resistance at $36.

By understanding these factors, investors can better navigate the current trends in Bitcoin, gold, and silver pricing, ensuring they make informed decisions in the evolving financial landscape.

Following a rate cut of a quarter percentage point by policymakers, the data indicates that the stock market has calmed, moving beyond the fear it exhibited earlier this month.

Price Outlook for Bitcoin, Gold, and Silver Amid Stock Market Recovery

As of December 11, the US stock market reached an all-time high, with experts forecasting additional growth following the Fed's interest rate reduction—a strategy typically associated with stock market boosts.

Lower interest rates improve corporate earnings, promote business investment, and enhance the future value of earnings. Additionally, reduced borrowing costs stimulate consumer spending, leading investors to shift focus from bonds to stocks for potentially higher returns.

Together, these factors improve liquidity and increase risk tolerance, which generally drives stock prices higher across various sectors. This explains the stock market's recent departure from its fear-driven state.

Simultaneously, Bitcoin, gold, and silver are experiencing similar positive sentiments, with both XAU (gold) and XAG (silver) prices increasing as holding costs decrease and future inflation expectations rise.

Bitcoin's daily chart illustrates a price recovery within a clearly defined ascending channel established after a steep correction from its early October highs. Although it remains below the significant exponential moving averages (the 50-day at $96,583 and the 100-day at $101,943), BTC is showing preliminary signs of stabilizing. Each recent low is higher than the previous one, indicating a classic early-stage recovery pattern.

The bullish Volume Profiles (indicated by green horizontal bars) reveal a substantial high-volume node near the 78.6% Fibonacci retracement level, suggesting that bulls might defend the critical support at $90,358. This level could act as a benchmark for price changes, potentially setting the stage for a rise in value.

If Bitcoin successfully closes above the $90,358 mark, it could aim for the larger liquidity range between $98,000 and $103,000. Meanwhile, the Relative Strength Index (RSI) remains neutral, indicating potential for movement in either direction. The Awesome Oscillator (AO) histograms are edging toward positive territory, suggesting that bullish momentum is building.

Still, short-term bullish continuation hinges on maintaining the upward channel structure. If Bitcoin slips below the lower boundary of this channel coinciding with the 78.6% Fibonacci level at $90,358, it could face bearish pressure, potentially dropping to the range of $86,000 to $80,600.

One of the main challenges is reclaiming the EMAs, particularly the 50-day and 100-day, clustered around $96,583 and $101,943. Historically, Bitcoin has shown to accelerate once it surpasses these moving averages during mid-cycle consolidations.

Overall, Bitcoin shows a managed recovery, with increasing volume and a constructive channel, but significant confirmation will only be evident if bulls regain the $100,000 psychological threshold.

The 4-hour chart for XAU/USD indicates that gold is flirting with a breakout from a lengthy, compressing symmetrical triangle. This technical formation emerged following a sharp $490 retracement (down 11.19%) earlier this quarter.

Symmetrical triangles that form towards the end of an upward trend typically act as continuation patterns, wherein the price consolidates before resuming its prior upward trajectory. Gold's breakout aligns with this pattern, surging past the downtrend line with significant momentum. The measured move of the triangle suggests a target of approximately $4,720, indicating an 11% increase above the breakout point.

Currently, the gold price is stabilizing around $4,273, where the breakout candle closed. As long as gold holds above the triangle's upper boundary, the bullish structure remains intact. Traders interested in long positions on XAU/USD might want to wait for a successful retest of the upper trendline.

The RSI is at a mid-range level but is leaning bullish at 65, indicating that gold is not yet overbought. Its upward trajectory reflects strengthening momentum, which is generally a positive setup for continuation. The Moving Average Convergence Divergence (MACD) lines have crossed into bullish territory and are widening, signaling increased upward pressure.

Support levels to monitor include $4,180, $4,140, $4,098, and a deeper pivot at $3,998, which marks the base of the previous correction. As long as the gold price remains above these levels, the bulls maintain control.

Moreover, gold's breakout is consistent with various macroeconomic factors such as rising geopolitical tensions, persistent inflation expectations, and strong demand from central banks, which have been significantly increasing their gold purchases:

In October, global central banks bought over 53 tonnes of gold, marking the highest monthly total since November 2024.
This represents a 194% increase from July and marks a third consecutive month of growth.

Technically, these structures suggest the possibility of returning to and potentially exceeding recent highs.

Looking at silver, its long-term chart showcases one of the strongest bullish trends seen in commodities—a whole cycle "Cup & Handle" breakout. The cup runs from the peak in 1980 to the rejection in 2011, predicting an 871% upswing. The handle, smaller yet strong, extends from 2011 to 2024, indicating a 152% measured move. Both formations meet at a breakout point near $36, a level silver has struggled to breach for over 40 years.

The most recent candle reflects a decisive, high-volume breakout above this resistance, indicating a structural change rather than a temporary uplift. When a commodity breaks through a longstanding resistance, the pace of price discovery can increase dramatically due to a lack of historical barriers.

However, the RSI is currently above 80, suggesting it is in overbought territory. In long-term breakouts, this often indicates momentum rather than a sign of exhaustion. The MACD has strongly crossed into bullish territory, confirming the upward trend.

If the breakout holds, the next psychological hurdle is $70, and the previous all-time high range of $50 has transitioned into a support zone.

Given the extensive consolidation and tight multi-year supply issues in the silver market, breaching historical peaks is feasible. Yet, due to its historical volatility, a retest of the $36 area would not be unusual before any sustained move upward.