Panic has begun sweeping tech stocks and quickly spreading to the crypto market. The Nasdaq-100 recently closed down at 28,128, its lowest level since May 5, 2026, marking an 11-week low. This sharp decline was triggered by investor concerns over heavy corporate cash burn directed toward funding artificial intelligence (AI) infrastructure.
The scale of capital allocation in the tech sector was underscored by Alphabet’s purchase of $94 billion in SpaceX shares during its initial public offering (IPO) last June. Peter Andersen, CEO of Andersen Capital Management, captured the market’s anxiety in a pointed statement: “People are asking, how do we make sense of all this spending, and how patient do we have to be before it produces tangible profits?”
Caught Between Bond Yields and Defensive Shifts
This hesitation has prompted investors to rotate capital into safer assets, dealing a double blow to Bitcoin. Bitcoin’s correlation with growth-oriented tech stocks has tightened, causing selloffs on the Nasdaq to directly drag down crypto asset prices. Meanwhile, the 10-year US Treasury yield climbed to 4.71%, its highest level since January 2025. The rising yield directly increases the opportunity cost for investors holding Bitcoin over risk-free assets.
The immediate impact is evident in cooling institutional appetite. For the week ending July 24, spot Bitcoin ETFs recorded net inflows of just $33 million, marking the weakest weekly inflow seen over the past three weeks.
What Happens If Support Breaks?
On the 4-hour chart, Bitcoin’s price action is stalling as it tests an ascending support trendline. This line has played a vital role in supporting prices and has remained unbroken since early July 2026. Waves of selling pressure continue to push prices lower from the $66,900 high touched on July 21.
Technical indicators confirm seller dominance. The 4-hour Relative Strength Index (RSI) sits at 35.85, well below its moving average of 42.67 and edging closer to oversold territory. A similar pattern is visible on the MACD, which displays a clear bearish signal. The blue MACD line plunged to -342.39, crossing below the -155.51 signal line accompanied by expanding red histogram bars.
If prices manage a rebound, Bitcoin faces key resistance waiting at $67,303.10. However, with indicators flashing red, traders are largely eyeing downside levels. Bitcoin has psychological support at $60,000, along with secondary horizontal support at $60,688.54.
Should the 4-hour support break and be confirmed by a daily close below that threshold, the market risks triggering a cascading liquidation of long positions below $63,000. For leveraged traders, the coming days will require more than just optimism. Now is the time for strict risk management to prevent liquidation before the market decides its next direction.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
