Bitcoin price teeters on vital support as tech sell-off sparks profit-taking
The Bitcoin price slid to $64,017 today, July 25, testing a crucial ascending trendline support level as macroeconomic headwinds triggered a broad tech sector sell-off and defensive profit-taking. The leading cryptocurrency’s 2.49% decline over the last 24 hours reflects escalating investor concerns over heavy artificial intelligence (AI) spending by tech giants and a pivot towards safer assets.
This downturn comes as the Nasdaq-100 index plunged to its lowest point since May 5, while US Treasury yields climbed, making government bonds more attractive. Spot Bitcoin exchange-traded funds (ETFs) underscore this cautious sentiment, recording their worst inflows in three weeks, drawing just $33 million.
Tech Sell-off Batters Risk Assets, Dents Bitcoin Confidence
The immediate catalyst for Bitcoin’s recent slump appears to be the substantial liquidation unfolding across technology equities. On July 25, the Nasdaq-100 index closed its previous trading session at 28,128 points, establishing an eleven-week low. This significant equity drawdown stems from investor anxiety.
Many worry that the massive capital expenditures pouring into AI infrastructure will inevitably reduce immediate corporate cash flows and increase corporate debt burdens.
Peter Andersen, Chief Executive Officer of Andersen Capital Management, articulated this concern, noting, “People are thinking, how do we make sense of all this spending, and how much more patient do we have to be before we actually see it translate to actual profits?”
AI spending raises corporate debt concerns
The scale of AI investment is staggering. The four largest US technology companies — Meta, Microsoft, Google, and Amazon — are collectively projected to spend close to $700 billion on AI infrastructure in 2026. This enormous outlay has prompted a capital preservation mindset in traditional finance, affecting digital asset markets.
Traders are choosing to secure profits rather than risking capital on volatile assets. And that’s meant Bitcoin, increasingly viewed as a leveraged risk asset sensitive to macro shifts, is feeling the pinch. Its correlation with high-growth technology shares has strengthened markedly.
Institutional Investors Pivot from Crypto Markets
In parallel with the equity contraction, institutional demand for digital assets shows clear signs of constraint. Data from SoSoValue reveals that spot Bitcoin exchange-traded funds (ETFs) registered a mere $33 million in net inflows during the week ending July 24. This figure marks the weakest weekly capital intake for these investment vehicles in three weeks.
This reduction in capital allocation coincides with a notable shift in the broader fixed-income landscape. Specifically, the US Treasury 10-year yield advanced to 4.71%, its highest level since January 2025. Such a move profoundly impacts the attractiveness of riskier holdings.
Higher bond yields shift capital outflows
Higher yields on risk-free government bonds fundamentally change the opportunity cost of holding volatile crypto assets like Bitcoin. When government debt instruments offer guaranteed returns at these levels, institutional allocators frequently pivot away from high-beta investments. This pattern cuts the baseline liquidity available for crypto, reinforcing inflation fears and driving investor caution.
The market’s shift highlights how tightly Bitcoin’s fortunes are now tied to traditional financial markets. This is particularly true for institutional portfolios where it’s often treated like a software growth stock, as evidenced by its historical correlation with the iShares Expanded Tech Software Sector ETF (IGV).
Bitcoin Price Tests Critical Technical Support Levels
Technically, Bitcoin now sits at a precarious juncture. Trading at $64,017.51, the asset is just under its yellow moving average ribbon line of $64,266.14 on the 1-day chart. Overhead, long-term resistance remains defined by a higher red trendline at $77,301.64.
Shorter-timeframe data on the 4-hour chart shows Bitcoin actively testing a vital upward-sloping purple trendline. This line has served as dynamic support since early July. Breaking this specific support could trigger significant selling pressure, exposing new vulnerabilities.
Bearish indicators signal tactical disadvantage
The 4-hour Relative Strength Index (RSI) has slid to 35.85, tracking below its yellow moving average line of 42.67. This places Bitcoin near oversold territory but indicates weakening momentum. Concurrently, the Moving Average Convergence Divergence (MACD) indicator registers a bearish configuration.
The blue MACD line has crossed below the orange signal line at -342.39 versus -155.51, amid expanding red histogram bars. This alignment, combined with increased volume during down-swings, suggests sellers hold the immediate tactical advantage, pushing Bitcoin toward key price levels that could define its next move.
What a Breakdown Could Mean for Bitcoin
If the ascending 4-hour trendline breaks conclusively on a daily closing basis, the primary bullish setup will face invalidation. This scenario would expose the psychological support floor at $60,000, with a secondary structural horizontal support level waiting lower at $60,688.54.
Additional downside risks stem from the potential for cascaded long liquidations in the derivatives market if the $63,000 level fails to hold. Such a breach could open the path toward deeper retests of May lows, erasing the recovery momentum built over the past three weeks as investors grapple with capital outflows.
Bitcoin has already seen significant price fluctuations. It touched an intraday high near $66,900 on July 21, but now sits at $64,017.51, down from $118,354.4 one year ago. This represents a 45.85% decline year-over-year, underscoring the asset’s continued volatility and sensitivity to market shifts.