The Bitcoin (BTC) price started the weekend with a strong move higher, reclaiming $85,000 and pushing toward $87,000 as short liquidations added fuel to the crypto market rally. Ethereum also climbed toward $2,700, XRP reached $1.50, and Dogecoin gained about 4% over the weekend.
Around $130 million in crypto positions were liquidated, including roughly $105 million in short positions, as traders responded to Treasury yields, Fed policy expectations and broader risk sentiment.
The market remained in Greed, but the weekend strength may have created a setup for a reversal. One top analyst, Ali Charts, has warned that the Bitcoin price could face another Monday decline based on a recurring weekend pattern and fresh technical sell signals.
Analyst Warns Bitcoin Price Could Reverse After Weekend Rally
Ali Charts pointed to a pattern from the past month in which Bitcoin price moves on Sunday have frequently reversed the following Monday. Sunday rallies were followed by declines, and Sunday drops were followed by rebounds, making the latest move above 1% another test of that pattern.
The analyst warned that the combination of the weekend pump and technical indicators could leave Bitcoin vulnerable to a pullback as the new trading week begins.
The main technical warning comes from the TD Sequential, which has produced a sell signal for Bitcoin. Ali Charts noted that the previous four comparable Bitcoin signals were followed by price corrections, giving the latest signal a historical basis for caution. If the same pattern repeats, the Bitcoin price could give back part of its weekend advance after approaching the $87,000 area.
3/6 There’s also a technical warning. The TD Sequential has flashed a sell signal on Bitcoin’s four-hour chart. Each of the last four similar signals was followed by a price correction, pointing to another Monday dump. https://t.co/SowQ8u01DN
— Ali Charts (@alicharts) October 4, 2026
Ethereum and Solana are showing similar warnings. The last two comparable TD Sequential sell signals for Ethereum were followed by declines of 5.40% and 3.31%, respectively, giving traders a clear reference for the potential size of an ETH pullback.
Solana has also recorded three similar signals that preceded corrections of 2.44%, 5.76% and 5.30%, adding to the broader concern around weekend rallies reversing during the week.
5/6 Solana $SOL has flashed a four-hour TD Sequential sell signal, too. The last three comparable signals preceded corrections of 2.44%, 5.76%, and 5.30%. https://t.co/GNrIDWAPIx
— Ali Charts (@alicharts) October 4, 2026
Related Bitcoin News: Bitcoin Price Tops $87K, But Analyst Warns the Rally Could Be Nearing Exhaustion
The market backdrop also gives traders reasons to watch the Bitcoin price closely. The weekend rally came with about $130 million in total liquidations, including $105 million from bearish short positions, meaning forced buying helped push prices higher as short traders were closed out. If fresh spot demand fails to replace that leverage-driven buying, Bitcoin could face selling pressure as traders take profits around the $87,000 level.
The key question now is whether the Sunday rally can extend into Monday trading or follow the reversal pattern identified by Ali Charts. The Bitcoin price has reclaimed $85,000, but the move toward $87,000 places the market close to a level where profit-taking could increase, especially with the TD Sequential flashing a sell signal.
For the BTC price, holding above $85,000 would help maintain the weekend recovery, but a move back below that level could open the door to a deeper retracement.
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