• Bitcoin's technical setup suggests potential 12% correction before possible rebound toward all-time highs.

• Ethereum shows signs of weakening momentum with key support levels coming into focus.

• Ripple displays bearish divergence pattern that could Will Dogecoin reach ?trigger additional downside pressure.

• Market volatility spikes as traders position for Federal Reserve policy announcement.

The cryptocurrency market entered a cautious phase Tuesday as Bitcoin failed to maintain footing above $65,000, dragging major altcoins Ethereum and Ripple lower. This price action comes amid heightened anticipation for Wednesday's Federal Open Market Committee meeting, with traders weighing potential implications for risk assets.

Market participants appear to be pricing in a pause on interest rate adjustments, with diminishing expectations for additional hikes. Such monetary policy positioning could potentially create favorable conditions for digital assets, as accommodative stances historically correlate with increased risk appetite among investors.

Bitcoin's daily chart reveals the development of a Head-and-Shoulders formation, a technical pattern often preceding downward movements. The setup projects approximately 12% downside potential should the pattern complete, with key momentum indicators supporting this bearish scenario.

The Relative Strength Index shows pronounced downward momentum, while the Awesome Oscillator's histogram bars continue fading toward neutral territory. These technical signals suggest Bitcoin could test the weekly imbalance zone between $52,985 and $59,005 before establishing a base for potential recovery.

However, should buying pressure intensify at current levels, Bitcoin bulls would need to reclaim and hold above the pattern's neckline to invalidate the bearish setup. Such development could open the path toward retesting the $69,000 resistance level.

Ethereum Price Analysis: Critical Fibonacci Levels in Focus

Ethereum's recent price action saw it breach the psychologically significant 61.8% Fibonacci retracement level at $3,365, shifting attention toward the 50% retracement marker at $3,137. Momentum indicators currently favor additional downside, with the RSI crossing below its midpoint and the Awesome Oscillator showing weakening bullish energy.

This technical configuration suggests Ethereum may need to retreat toward the $3,013 support area before attracting sufficient buying interest. Such a move would represent approximately 10% decline from current levels, potentially creating more favorable risk-reward conditions for market participants.

Conversely, renewed buying pressure could propel ETH toward testing resistance at the 78.6% Fibonacci level near $3,691. A decisive break above this barrier might trigger accelerated momentum, potentially challenging the range high at $4,105 - representing 25% upside potential from current valuations.

Ripple's Bearish Divergence: Warning Sign for XRP Traders

Ripple's price action reveals concerning technical developments, with the appearance of a bearish divergence between price and momentum. While XRP has established higher lows on its chart, the RSI indicator has simultaneously printed lower lows - a classic warning sign of weakening bullish momentum.

This divergence increases the probability of downside continuation, with potential targets including the $0.5500 support level and possibly extending toward $0.5368 in more bearish scenarios. Such movement would represent approximately 11% depreciation from current price levels.

On the flip side, buyers could attempt to regain control by pushing XRP above the 50% Fibonacci retracement at $0.6152. Successful consolidation above this level might open the door for a test of stronger resistance near $0.6460, with a breakout potentially fueling momentum toward the $0.7457 range high - translating to 24% upside potential.