• Bitcoin is showing weakness after peaking near $130,000, now testing a three-week low around $112,000.
• Analyst warns BTC may form a double top pattern, risking a 45% correction down to $70,000.
• Key support lies between $105,000 and $107,100, amid miners selling 3,000+ BTC in two weeks.

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.

Also Read: Bitcoin Faces Crucial Q3 Test: Will $110K Support Hold or Collapse?

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.

Potential Drop to $70K Could Mirror 2021 Crash

“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.

Sideways Range Broken as Price Plunges

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.

Also Read: Bitcoin Dominance Grows as Strategy Targets 1.5 Million BTC Holdings