Crypto Markets Under Pressure as Fed Decision Looms

Crypto markets are under pressure as Bitcoin, Ethereum, and XRP trade below key levels. The ongoing correction is fueled by risk-off sentiment, which remains weak according to the Crypto Fear & Greed Index.

The index holds at 29, indicating that investors are fearful rather than greedy. This sentiment is also reflected in the Federal Reserve's upcoming rate decision, with a 64% probability of holding interest rates steady and a 36% chance of a hike.

Bitcoin spot Exchange-Traded Funds (ETFs) have extended their bearish streak for three consecutive days, with outflows approaching $12 million on Monday. Ethereum spot ETFs, however, have seen inflows returning, reaching roughly $9 million on Monday after Friday's $71 million in outflows.

The technical outlook for Bitcoin is bearish, with price trading below a dense pack of moving averages and momentum indicators suggesting a lack of buying conviction. Immediate resistance lies at the 50-day EMA at $64,971, followed by the Parabolic SAR level at $66,956 and the 100-day EMA at $67,651.

Ethereum's technical outlook is more constructive, with price sitting above the short-term 50-day EMA at $1,841. However, momentum indicators suggest that bulls may face a slower grind higher rather than a clean breakout.