Bitcoin, Ethereum, Dogecoin Slide As Traders Turn Cautious Before Fed Meeting: Analyst Foresees BTC 'Correction' To $86,000

Leading cryptocurrencies dipped on Sunday ahead of the Federal Reserve's monetary policy meeting.

What Happened: Bitcoin experienced sell-offs throughout the evening after peaking at $96,000 in the early morning hours.

Ethereum also slipped below $1,800 overnight, with trading volume rising by more than 6% in the last 24 hours.

The apex cryptocurrency's market dominance rose to a yearly high of 63.9% on Sunday, while Ethereum's share was 7.4%.

The pullback eroded over $180 million worth of long positions from the market in the last 24 hours. Additionally, Bitcoin’s Open Interest fell over 3% in the last 24 hours to $62.19 billion. 

Over 50% of Binance traders with open BTC positions were positioned short on Bitcoin as of this writing, per the Long/Short Ratio.

The market sentiment turned "Neutral,", according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization dropped 1.58% to $2.94 trillion in the last 24 hours.

Stock futures inched lower Sunday night. The Dow Jones Industrial Average Futures slid 249 points, or 0.61%, as of 9:31 p.m. EDT.  Futures tied to the S&P 500 dipped 0.64%, while Nasdaq 100 Futures lost 0.64%.

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Equities have rebounded sharply over the last two weeks, with the S&P 500 recouping all losses since President Donald Trump imposed sweeping tariffs on trade partners on "Liberation Day."

This week, the market will look forward to the Fed's policy meeting, which begins on Tuesday. Traders have priced in a roughly 97% chance that interest rates will remain at their current 4.25%-4.50% range, according to the CME FedWatch tool data.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analyst and trader Ali Martinez warned about a potential Bitcoin pullback, citing a "sell signal" by the TD Sequential indicator.

"If Bitcoin were to lose the $94,765 support level, a price correction to $90,000 or even $86,000 could follow," Martinez projected.

Typically, parabolic slope patterns are characterized by a steep, rapid, and exponential rise in price, followed by a sharp decline.

Cryptocurrency analyst Michaël van de Poppe noted that Ethereum's valuation has dropped to its lowest since August 2022, the COVID bottom in March 2020 and January 19.

"Forward-looking 12 months after those dates prices were substantially higher. Happy to accumulate ETH," Van de Poppe stated.

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