Bitcoin Faces 30% Retracement Risk as Double Top Pattern Emerges

Bitcoin (BTC) recently reached a high of $107,717 but encountered strong resistance at $110,388, forming a double top pattern that could trigger a reversal toward the $70,000 zone. This technical setup, highlighted by CryptoCapo, suggests a potential retracement if the rejection at the resistance level continues. The chart, published on June 25, 2025, has garnered attention amid growing concerns among traders about short positioning.

The analysis identifies three critical price zones: the current resistance at $110K, a key support level near $94K, and a broader support region between $60K and $70K. The double-top formation near the recent highs indicates potential weakness if the neckline support fails. This pattern is often seen as a bearish reversal structure, suggesting that sellers may be gaining control after an extended upward movement.

Bitcoin recently tested the $110K range but failed to close above the 2024 all-time high. The resistance zone, spanning from $107,717 to $110,388, has acted as a ceiling for multiple attempts since early June. The price has hovered below this zone for weeks, forming a rounded top near the peak and creating a textbook double-top pattern. This pattern signals exhaustion and suggests that sellers are gaining control.

If the price breaks below the $94K key level, the chart implies a sharp drop toward $73,858 or possibly lower. The blue support zone on the chart ranges from $60,000 to $70,000 and includes the 2021 all-time high of $69,000. This range has acted as long-term support in previous cycles, offering a cushion during major corrections. The zone also aligns with the April 2021 peak of $64,890. Analysts have long viewed this $60K–$70K band as a psychological floor that can attract renewed buying pressure during market dips. The current price action could revisit these levels if BTC loses the $94K pivot. Volume data historically shows strong bids entering between $65K and $70K.

A deeper move toward this zone would mark a 30 percent retracement from the recent $108K high, which is not uncommon in post-bull market structures. However, a close above $110K would invalidate the current bearish bias and shift the trend back toward continuation. CryptoCapo shared the chart with the statement, “Capo is adding to all his shorts,” signaling growing bearish conviction. The post, published on July 6, 2025, has since gained over 73,000 views and nearly 400 reposts. The sentiment has prompted speculation about market downside potential.

Traders reacted to the post with mixed views, with some calling for caution and others asking what CryptoCapo might know. The rising interest in shorts may indicate a broader expectation of retracement before any further upside resumes. The “real capitulation area” is marked below $73,858, suggesting that a break below this level could accelerate downside momentum. For now, $94,000 remains the next technical level that BTC must hold to avoid further downside.