Crypto Today: Bitcoin, Ethereum, XRP pause uptrend amid potential profit-taking 

• Bitcoin breaks below $115,000, buoyed by steady ETF inflows and growing optimism ahead of the Fed's interest rate decision.
• Ethereum shows short-term weakness, sliding below $4,600 amid potential profit-taking.
• XRP pulls back to test a descending trendline support, reflecting growing volatility in the broader crypto market.

Bitcoin (BTC) pauses last week's steady uptrend, declining below $115,000 on Monday. The pullback in the price of BTC is sending subtle shockwaves across the cryptocurrency market, with Ethereum (ETH) and Ripple (XRP) front-running the correction in altcoins.

Data spotlight: Bitcoin regains institutional interest 

Institutional interest in Bitcoin (BTC) has stabilized over the past week, with spot Exchange Traded Funds (ETFs) in the United States (US) experiencing steady inflows. According to SoSoValue data, BTC ETFs saw $2.34 billion in inflows last week, bringing the cumulative total inflow volume to $56.83 billion. Total net assets currently average at approximately $153 billion.

Bitcoin spot ETFs stats | Source: SoSoValue

As for Ethereum, spot ETFs in the US gained momentum last week, with approximately $638 million flowing in, as shown in the chart below. Ethereum ETFs boast a cumulative total net inflow volume of slightly above $13 billion and total net assets of $30 billion.

Ethereum spot ETFs stats | Source: SoSoValue

As for XRP, retail demand for the token remains relatively high with the futures Open Interest (OI) averaging $8.7 billion on Monday. Due to the ongoing correction and traders' repositioning, the OI, which refers to the notional value of outstanding futures contracts, is down slightly from $8.95 billion recorded on Sunday.

XRP Futures Open Interest | Source: CoinGlass

Following the significant gains of Bitcoin, Ethereum, and XRP last week, traders appear to be taking profits and repositioning themselves ahead of the highly anticipated US Federal Reserve (Fed) interest rate decision. The Federal Open Market Committee (FOMC) meeting on Wednesday is expected to cut interest rates – a move that would match general market expectations.

There is a 94.2% chance that the Fed will cut rates by a 0.25 percentage point to a range of 4.00% to 4.25%, according to CME Group's FedWatch tool. The rest of the market expects a 0.50 percentage point cut. Currently, interest rates in the US range between 4.25% and 4.50%. 

FedWatch tool | Source: CME Group

Lower interest rates are expected to increase interest in riskier assets, such as equities and cryptocurrencies. Therefore, a rate cut could launch the crypto market into a bullish fourth quarter.

Chart of the day: Bitcoin trims gains as volatility spikes 

Bitcoin price holds below $115,000 at the time of writing on Monday, marking a cooldown from last week's steady uptrend above the $116,000 level. Short-term technical analysis suggests that choppy market conditions will continue ahead of the Fed interest rate decision.

The Relative Strength Index (RSI) declining to 55 on the daily chart highlights easing bullish momentum. However, an upturn toward overbought territory would confirm Bitcoin's bullish potential for a breakout above the $120,000 level.

At the same time, the Moving Average Convergence Divergence (MACD) indicator suggests that bulls still have the upper hand. With the blue MACD line remaining above the signal line, bullish momentum is likely to gain traction in the coming days.

Still, if profit-taking continues, triggering volatility, traders would look toward the 50-day Exponential Moving Average (EMA) at $113,399 and the 100-day EMA at $111,281 for potential support.

BTC/USDT daily chart

Altcoins update: Ethereum, XRP ease gains 

Ethereum holds slightly above $4,500 amid a spike in volatility in the broader cryptocurrency market on Monday. The Relative Strength Index (RSI) at 55 backs the pullback as it declines toward the midline.

Despite the short-term bearish outlook, traders should temper their bearish expectations, considering the MACD indicator maintains a bullish outlook with the blue line above the red signal line. If the situation worsens and supply outstrips demand, it would be prudent to shift focus to the 50-day EMA at $4,187 as the next tentative support level.

ETH/USDT daily chart

As for XRP, the current correction from last week's peak of $3.18 is testing a key descending trendline that has become support. The decline in the RSI, which is holding at 50 after peaking at 60 on Saturday, shows a reduction in bullish momentum. 

XRP/USDT daily chart

If the decline extends further below the midline, the path of least resistance could remain downward, increasing the chances of the XRP price trading below the 50-day EMA at $2.93. The 100-day EMA at $2.81 and the 200-day EMA at $2.56 are positioned to absorb the potential selling pressure in case investors aggressively reduce their exposure.