Bitcoin, Ethereum, Solana Show Short-Term Sell Signals

Bitcoin (BTCUSD), Ethereum (ETHUSD), and Solana (SOLUSD) are showing short-term sell signals, according to crypto analyst Ali Martinez. The pattern, dubbed 'Sunday pump, Monday dump,' suggests potential pullbacks following recent Sunday rallies. Martinez observed that Bitcoin’s Sunday rallies were consistently followed by Monday declines from August 29 through September 28.

Technical indicators support this pattern. The TD Sequential has flashed a sell signal on Bitcoin’s four-hour chart, with previous signals leading to price corrections. Ethereum and Solana also show similar four-hour sell signals, each historically followed by notable declines. For Ethereum, the previous two signals preceded drops of 5.40% and 3.31%, while Solana’s past three signals preceded corrections ranging from 2.44% to 5.76%.

Despite the near-term correction risk, Martinez remains bullish on the long-term outlook for these cryptocurrencies. Bitcoin’s two-year rising channel suggests a potential target near $125,000, with a decisive breakout aiming for $190,000. Ethereum faces resistance near $5,000, with a breakout potentially targeting $8,800. Solana’s monthly chart indicates a cup-and-handle pattern, with a monthly close above $295 projecting a target near $2,750.

As October began stronger than usual, CryptoQuant data shows Bitcoin outperforming during what has historically been the month’s weakest stretch. From October 1 through October 3, Bitcoin slipped just 0.14%, compared to the historical average decline of 0.66%. On October 4, Bitcoin traded near $85,132, up 1.86% from September’s close. This resilience follows a strong September, where Bitcoin gained 6.39%, outperforming its historical average decline of 4.02%.