Bitcoin price declines to trendline support after technical completion triggered profit taking

The price of Bitcoin fell under major storms today, July 25, as the Nasdaq-100 index fell to its lowest level since May 5 due to growing concerns about the use of artificial intelligence by technology executives.

At the time of writing, the leading cryptocurrency is trading at $64,017.51, which represents a decrease of 2.49% in the last 24 hours. Daily trading costs reached $22.84 billion according to CoinMarketCap data, which represents an increase in selling pressure after BTC recently touched an intraday high near $66,900 on July 21.

Market sentiment has turned to caution because Bitcoin is increasingly associated with high-growth technology stocks.

Tech equity liquidation causes crypto selloff

Data from TradingView shows that the Nasdaq-100 index closed its previous trading session at 28,128 points, establishing an eleventh week low. This drop in equity value is due to investors’ concerns that large-scale spending on AI infrastructure will quickly reduce cash flow for companies and increase corporate debt burdens.

For example, Alphabet bought $94 billion worth of SpaceX stock during an initial public offering in June, which highlights the technology sector’s capital allocation ratio.

Commenting on the move, Peter Andersen, Chief Executive Officer of Andersen Capital Management, commented:

“People are thinking, how do we make sense of all this spending, and how long do we have to be patient before we see it translate into real profit?”

This concept of saving more money in traditional currencies has encouraged hedging in digital asset markets, where traders take profits rather than risk the currency of volatile assets.

Why Bitcoin institutional demand channels are stagnant

Along with the reduction in equity, the channels that the institution wants for digital assets are showing signs of limitations. Data from SoSoValue shows that Bitcoin exchanges registered $33 million in revenue during the week ending July 24. This cumulative figure represents the weakest weekly revenue for the investment vehicle in three weeks.

The reduction in the capital budget is increasing in line with the significant change in the nature of fixed income. Specifically, the 10-year US Treasury yield rose to 4.71%, the highest level since January 2025.

Higher yields on risk-free government bonds change the opportunity cost of holding volatile crypto assets. When government debt instruments present guaranteed yields at these levels, institutional investors tend to shy away from high-beta risk assets such as Bitcoin.

Such a pattern of massive redistribution reduces the base capital available to support crypto prices during equity market downturns. A decline from the July 21 peak of $66,900 indicates that market participants are preferring cash or the safety of fixed income rather than protecting local support levels. So, the combination of tech stock liquidations and rising yields forced a smart pullback.

Bitcoin price technical levels are important to watch

On the 1-day chart, the daily candlestick prints at $64,017.51, placing the asset below the moving yellow ribbon line of the $64,266.14 average. Long-term overhead resistance remains defined by the upper red trendline sitting at $77,301.64.

The Aroon indicator on a daily basis provides a mixed view of long-term momentum; The Aroon Up line measures 71.43%, while the Aroon Down line measures 14.29%. An important horizontal resistance line is established at $67,303.10, which corresponds to the structure of the distribution areas from the beginning of June.

Short-term data on the 4-hour chart reveals that Bitcoin is currently testing the purple upward trend line that has served as strong support since early July. The 4-hour Relative Strength Index has slipped to 35.85, tracking below its yellow moving line of 42.67, which puts the stock near an oversold area.

At the same time, the Moving Average Convergence Divergence indicator registers a bearish configuration, with the green MACD line falling below the orange signal line at -342.39 versus -155.51 between the red bars of the histogram.

The immediate price action shows a vertical cluster of sell orders near the 4-hour trend line, indicating that short-term speculators are actively hedging spot exposure. Volume bars at short intervals increased during the downswing, confirming that the separation effort is supported by active distribution rather than bottom fluid drift.

This alignment between a negative MACD crossover and a short-term moving average breakdown suggests that traders are holding fast tactical profits. If the daily close is only below this slope, the structure changes from a normal positive reversal to a broad reversal of the structure.

Downside risks invalidate the bullish view

If this 4-hour ascending trend line breaks the daily close, the main bullish setup will face invalidation. Under this scenario, a breakout would reveal psychological support at $60,000, with a second horizontal support level awaiting the bottom at $60,688.54.

Additional downside risks come from the potential for long currency swings in the derivatives market if the $63,000 level fails to hold. A breach of these key horizontal values ​​will pave the way for a deeper test of May’s decline, completely erasing the recovery momentum built up over the past three weeks.