Bitcoin Sell Signal Flashes Ahead of Historically Weak August

Bitcoin is currently trading at $62,984, having formed a bearish engulfing pattern on its daily chart. This development adds to the bearish case for the digital asset, as it failed to reclaim market structure after rejecting the retest of the broken rising channel.

The 3-day chart from Alicharts shows that a TD Sequential sell signal has printed just ahead of August, a month historically associated with Bitcoin pullbacks. This combination of factors suggests that a significant downturn could be on the horizon for $BTC.

Key support and resistance levels indicate that breaking above $65K is necessary to generate lasting momentum for Bitcoin. Until then, movements between $60K and $65K are considered sideways action.