Bitcoin extended losses early Thursday, falling to $63,000 for the first time since February 24. The cryptocurrency has lost over 14% this week alone and 21% over the past four weeks, according to CoinDesk data.
The selling has sparked demand for protective option plays, pushing the fear gauge, the 30-day implied volatility index BVIV, to 53.17, the highest level since April 2.
Investors pulled another $50 million from U.S.-listed spot ETFs on Wednesday, marking the 13th straight trading day of outflows from these vehicles, which are seen as a proxy for institutional demand.
“A broad selloff in crypto, which started with Strategy’s transfer triggering ETF outflows and is now fueled by speculative news about Mt. Gox liquidations, signals a potential continued selloff. BTC at $50k is a level that some are starting to talk about as a bottom this year,” Paul Howard, senior director at liquidity provider Wincent, said in an email.
“While there is a long way to go, the absence of catalysts and the movement of liquidity to other technology sectors such as AI indicate that we have further volatility ahead,” he added.
Some traders are closely watching levels around $60,000 as potential support. In the February crash, prices nearly tested this level on some exchanges before the selloff ran out of steam
“The first big zone I’m watching is the low $60,000 region because that’s where a lot of important pieces are starting to come together. We have the local low around $59.9k. We have the 200-week moving average now sitting in the same general area,” analysts at data-tracking platform Material Indicators said in an email.
“It doesn’t guarantee support. It just tells us that this is where the market has to make a decision,” they added.
