Weekly Market Insights: Gold’s Bearish Trend, Crude Oil’s Stagnation, and Bitcoin’s Volatility

Dec 30, 2024

2 min read

Updated December 30, 2024

Key Takeaways

Gold continues its bearish trend, moving closer to the key support level near $2,500, and presents potential trading opportunities for short sellers.
Crude Oil shows minimal fluctuations within a narrow range of $69.4 to $70.6, offering limited opportunities for profitable trades.
Bitcoin is undergoing a correction, testing support near $94,500, with a possible downside target of $88,000, but its long-term outlook remains optimistic.

Gold: Persistent Bearish Trend and Trading Opportunity

Gold's downward trajectory remains consistent, aligning with last week’s analysis. The divergence between futures and spot prices presented a prime shorting opportunity at $2,760.

The bearish trend could lead to a test of the $2,540 support level, potentially extending to $2,500. With trading volume expected to rise, the bearish channel offers favorable conditions for short setups in the coming weeks.

Crude Oil: A Lackluster Asset

Crude Oil continues in a narrow range, oscillating between $69.4 and $70.6. The convergence of moving averages signals minimal price movement.

While aggressive traders may use Bollinger bands for range-bound trades, experienced traders seeking larger swings might find current conditions less appealing. Short-term opportunities exist on 4-hour and 2-hour charts for precise range-bound trading.

Bitcoin: Facing Correction Amid Long-Term Bullish Sentiment

Bitcoin dropped $15,000 after peaking at $108,000, correcting toward $94,500. A break below this level could target the 50% retracement at $88,000, possibly forming a double-top pattern.

Despite short-term corrections, Bitcoin remains strong for long-term holdings. Spot traders may consider building positions near $88,000 while waiting for stabilization.

Market Outlook

As the year ends, market volatility is heightened due to overlapping closures. Non-USD currencies showed minimal movement due to holiday inactivity. Traders should approach cautiously, using this period to prepare for 2025.

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