Analyst Flags Bitcoin Correction Risk After Sunday Gains Reverse on Monday

An analyst has issued a warning about potential Bitcoin price corrections following recent Sunday-to-Monday reversals. Over five consecutive weeks from August 29 to September 28, Bitcoin's price direction consistently flipped from Sunday to Monday. For instance, gains of 0.50% and 0.66% on August 29 and September 6 were followed by losses of 0.68% and 1.54% the next day. Conversely, dips of 0.57% and 0.10% on September 13 and 20 led to gains of 1.75% and 6.71% on the following Mondays.

A second cautionary signal comes from the TD Sequential indicator, which suggests Bitcoin’s four-hour chart has triggered a sell signal. Historically, similar signals have preceded corrections, with declines ranging from 1.74% to 4.37%. Ethereum and Solana have also shown comparable sell signals, with previous instances leading to drops of up to 5.76% for Solana.

Despite these warnings, Bitcoin has seen gains across various timeframes. The price surged above $87,000 after a weak US jobs report on Friday before falling below $84,000. Lacie Zhang of Bitget Wallet research identifies $87,500 as a critical resistance level, with support between $82,000 and $85,000. At the time of writing, Bitcoin was trading just above $86,000, up 1.5% in 24 hours and nearly 4% over the past week.

Looking at broader trends, Bitcoin is still down roughly 31% year-to-date and about the same distance from its all-time high of over $126,000. The two-week and 30-day gains stand at almost 6% and over 8%, respectively. The article concludes with a disclaimer that the content reflects the author's opinion and is not intended as investment advice.