Bitcoin Up More Than 1% but ‘Monday Pullback’ Warning Emerges as TD Sequential Flashes Sell Signal
Summary
- Bitcoin rose more than 1% on Sunday, raising the possibility of a short-term pullback based on a recently repeated Monday correction pattern.
- On Bitcoin’s four-hour chart, the TD Sequential indicator, used to identify potential trend reversals, flashed a sell signal.
- Martinez said all four recent instances of the same sell signal on Bitcoin’s four-hour chart were followed by price corrections, though that does not guarantee further declines.
Forecast Trend Report by Period
Bitcoin rose more than 1% on Sunday, but a short-term pullback warning has resurfaced amid a recently repeated pattern of Monday reversals and a technical sell signal.
Crypto market analyst Ali Martinez wrote on October 4 that over the past month, Bitcoin has repeatedly reversed its Sunday price move on Monday. When Bitcoin rose on Sunday, it fell the next day. When it weakened on Sunday, it rebounded on Monday.
With Bitcoin up more than 1% on Sunday, the pattern is again drawing market attention. If the recent trend persists, Bitcoin could give back part of those gains on Monday.
Technical indicators also signaled the potential for a near-term correction. On Bitcoin’s four-hour chart, the TD Sequential indicator, which is used to identify possible trend reversals, flashed a sell signal.
In the previous four instances when the same sell signal appeared on Bitcoin’s four-hour chart, a price correction followed, Martinez said.
Still, neither the Sunday-to-Monday reversal pattern nor the TD Sequential signal guarantees further declines. The analysis points only to the possibility of a short-term pullback based on recent price action and technical indicators.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.