Analyst Warns Bitcoin’s Weekend Rally May Reverse Monday
The Bitcoin (BTC) price surged over the weekend, climbing from $85,000 to nearly $87,000, driven by short liquidations that added momentum to the rally. Ethereum (ETH) also rose toward $2,700, while XRP and Dogecoin saw gains of about 4%. The market liquidated around $130 million in positions, with $105 million coming from short positions, indicating a forced buying pressure.
Analyst Ali Charts warned that the weekend rally could reverse on Monday, citing a recurring pattern where Sunday moves often reverse the following day. The TD Sequential indicator has also flashed a sell signal for Bitcoin, with the previous four similar signals leading to price corrections. This technical warning suggests Bitcoin may give back part of its weekend gains as the new trading week begins.
Ethereum and Solana are showing similar sell signals. For Ethereum, the last two comparable signals were followed by declines of 5.40% and 3.31%, while Solana’s signals preceded corrections ranging from 2.44% to 5.76%. The market backdrop, including the forced buying from short liquidations, adds to the uncertainty as traders watch for potential profit-taking around the $87,000 level.
The key question is whether Bitcoin can sustain its rally into Monday or if it will follow the reversal pattern identified by Ali Charts. Holding above $85,000 would support the recovery, but a drop below that level could lead to a deeper retracement.