Bitcoin continued its sharp decline early Thursday, dropping to 63,000 dollars and hitting its lowest point since February 24. According to CoinDesk data, the world’s largest cryptocurrency has lost more than 14 percent this week, with a staggering 21 percent fall over the last four weeks. This unexpected correction has caught the attention of the entire crypto market.
Mounting selling pressure and ETF outflows
The intense selloff in the market prompted investors to seek protection through options. As a result, Bitcoin’s 30-day implied volatility index, known as BVIV, surged to 53.17. This is the highest reading since April 2 and signals heightened uncertainty in the market.
Glossary: Implied volatility is an indicator reflected in option prices that shows the market’s expectations for future price fluctuations. BVIV tracks the expected 30-day volatility specifically for Bitcoin.
Meanwhile, spot Bitcoin ETFs listed in the United States witnessed 50 million dollars in outflows on Wednesday. This marks the thirteenth consecutive trading day of outflows from these products, which are seen as an important gauge of institutional investor demand.
Paul Howard, Senior Director at Wincent, stated that the broad selloff across the crypto market has deepened alongside ETF outflows. He added that speculation surrounding Mt. Gox liquidations is further increasing downward pressure.
Investors closely watch the 60 thousand dollar region
Howard also indicated that the current picture suggests the selling pressure could persist for some time. In his view, the lack of a new bullish catalyst and a shift in liquidity to other technology sectors like artificial intelligence are likely to extend the volatility. Howard noted that some investors are now speculating about a possible bottom at 50,000 dollars for this year.
At the same time, certain traders are zeroing in on the 60,000 dollar area as a potential support region. During February’s sharp correction, Bitcoin’s price on several exchanges nearly tested this threshold before selling pressure eased.
Analysts from Material Indicators highlighted that the first major zone to monitor is just above 60,000 dollars, since the local bottom is around 59,900 dollars and the 200-week moving average is also converging in that area.
However, the analysts cautioned that this technical intersection alone does not guarantee robust support. Still, the region has become a critical decision zone for the market, with potential to determine Bitcoin’s next direction.
