Bitcoin continued its decline in the early hours of Thursday, dropping to $63,000 and hitting its lowest level since February 24. According to CoinDesk data, the largest cryptocurrency has lost more than 14 percent this week and 21 percent in the last four weeks.
Selling pressure and ETF outflows came to the fore
The sharp pullback in the market led investors to turn to hedging options. This move caused the 30-day implied volatility index BVIV to rise to 53.17. The level in question was recorded as the highest value seen since April 2.
Mini dictionary: Implied volatility is a measure that is reflected in option prices and shows the level of volatility that the market expects in the coming period. BVIV is used as an index that tracks 30-day expected volatility for Bitcoin.
There was an outflow of $50 million from spot Bitcoin ETFs traded in the USA on Wednesday. Thus, money outflow was seen in these products for 13 consecutive trading days. Spot ETFs are being watched as a key indicator of institutional investor demand.
Wincent senior director Paul Howard said that the widespread selling wave that started in the cryptocurrency market deepened with ETF outflows, Mt. Gox liquidations also increased the pressure, he said.
The market is eyeing the $60,000 zone
Howard said the current outlook indicates that sales may continue for a while. According to him, the lack of a new bullish catalyst in the market and the shift of liquidity to other technology areas such as artificial intelligence indicate that volatility may continue. Howard also stated that some investors have started talking about $50,000 as a possible bottom level for this year.
On the other hand, some traders are closely monitoring the levels around $60,000 as a possible support zone. During the sharp decline in February, prices approached this threshold in some exchanges, and then the selling pressure weakened.
Material Indicators analysts noted that the first major monitoring area is the region just above $60,000, as the local bottom is located at $59.9,000 and the 200-week moving average is also approaching the same area.
Analysts emphasized that this technical intersection alone does not guarantee strong support. On the other hand, it is considered that the region in question has become a critical decision area in terms of determining the direction of the market.
