Bitcoin is displaying significant weakness after reaching highs near $130,000 last month. The leading cryptocurrency has steadily declined, recently hitting a three-week low below $112,000. Traders fear this may mark the beginning of a broader bearish reversal.
A chart shared by crypto analyst @sayinshallah is fueling those fears. In a recent post on X, he warned that Bitcoin may be forming a macro double top, just like the pattern that emerged before the brutal 2021 market crash. The similarities are striking.
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He pointed out that Bitcoin previously topped at $65,000, failed to break out, and then collapsed. Now, the price is showing a similar stall near $130,000. The market looks overheated, with influencers predicting $500,000 targets and politicians jumping on the pro-Bitcoin bandwagon.
“If history repeats,” @sayinshallah explained, “we may see a retracement to $70K.” That level served as strong resistance before and matches a key volume node. A drop of this scale would represent a 45% correction, typical in Bitcoin’s history but still painful for traders.
Bitcoin’s dominance has also stalled at around 62%, unable to break 63%. This mirrors its July performance, when altcoins started gaining strength. Traders are watching closely, as this setup could signal a fresh “altseason,” much like the one seen back in 2021.
Price-wise, Bitcoin peaked around $123,000 in mid-July but failed to sustain that momentum. It hovered in a tight range between $117,000 and $120,000 for days. A fake breakout attempt on July 25 failed, followed by a strong rejection at $119,000.
That rejection marked the turning point. BTC dropped sharply and hit a low near $112,000 on August 1. This price level marked a new three-week low and confirmed the loss of bullish control. Since then, the market has stayed under pressure.
The crash wiped out almost $1 billion in over-leveraged positions. Crypto analyst Ali Martinez said the next key support lies between $105,000 and $107,000. He highlighted $107,100 as an important accumulation point, likely to serve as a crucial defense line for bulls.
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