Bitcoin Faces Monday Reversal Risk After Weekend Rally

Bitcoin's weekend rally has traders bracing for potential volatility as analyst Ali Martinez points to a recurring pattern of Sunday gains reversing on Monday. The cryptocurrency climbed over 1% on Sunday, but Martinez's analysis of recent trading sessions reveals a consistent trend: significant Sunday moves often shift direction the following day. For instance, Bitcoin saw gains of 0.50% and 0.66% on August 29 and September 6, respectively, only to decline on the subsequent Mondays. Conversely, Sunday losses were followed by Monday rebounds, such as a 6.71% increase after a 0.10% drop on September 20.

Adding to the caution, Martinez highlighted a TD Sequential sell signal appearing on Bitcoin, Ethereum, and Solana charts. Historically, similar signals have preceded short-term corrections, with Bitcoin previously dropping by 1.74% to 4.37% after comparable indications. Ethereum and Solana have also shown sell signals, with past corrections ranging from 2.44% to 5.76% for Solana and 3.31% to 5.40% for Ethereum.

Bitcoin's recent price action has been volatile, briefly surging above $87,000 before retreating below $84,000. Key resistance is identified near $87,500, while support levels are between $82,000 and $85,000. At the time of writing, Bitcoin was trading around $86,000, up nearly 4% over the past week and more than 8% over the last month. Despite these gains, the asset remains roughly 31% below its yearly high and well off its all-time peak above $126,000.