Bitcoin extended losses early Thursday, falling to $63,000 for the first time since February 24. The cryptocurrency has lost over 14% this week and 21% over the past four weeks.
The selloff has triggered demand for protective options plays, pushing the 30-day implied volatility index (BVIV) to 53.17, its highest level since April 2.
Investors pulled another $50 million from U.S.-listed spot ETFs Wednesday, marking the 13th consecutive trading day of outflows from these vehicles, which are viewed as a proxy for institutional demand.
"A broad sell-off 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 sell-off. BTC at $50k is a level some are starting to talk about as a bottom this year," said Paul Howard, senior director at liquidity provider Wincent.
Some traders are closely watching levels around $60,000 as potential support. The February crash saw prices nearly test that level on some exchanges before the sell-off ran out of steam.
"The first major zone I’m watching is the low $60k region, because that is where a lot of important pieces start coming together. We have the local low around $59.9k. We have the 200-week moving average now sitting in that same general area," analysts at data tracking platform Material Indicators said. "That does not guarantee support. It simply tells us this is where the market should have to make a decision."