BTC is attempting to break above a series of lower price highs from April 14, which could stabilize the short-term downtrend.
The bellwether cryptocurrency was changing hands around $52,150, with hourly buyer volume at the highest since April 23.
Bitcoin rode the roller coaster this week, but its overall volatility has been in decline.
Analysts pointed to the Biden proposal to double capital gains taxes on high-income individuals as the catalyst.
Money's three social functions – storing value, exchanging it and providing a unit of account – are unraveling, with dramatic implications, says EYQ's Insights Director.
The daily RSI is approaching oversold territory, which could attract short-term buyers.
The premium measures the spread between bitcoin's price on Korean exchanges and other venues.
"While the shock may be sustained in stock markets, the nature of cryptocurrency will see straight through this dip," Landsberg-Sadie told CoinDesk.
Bitcoin falls as Biden's plan to raise capital gains tax hurts risk appetite.
Bitcoin's price fell about $4,300 in the last 24 hours.
The city is exploring paying its employees in bitcoin and adding bitcoin mining to its balance sheet.
Technical charts suggest a weakening trend, with altcoins rallying, as bitcoin slides toward $50,000.
The move is largely procedural and does not settle any questions around the origin of the Bitcoin white paper.
As BTC's price continues lower, one possible benefit is a decrease in the crypto's volatility.
BTC drawdowns have occurred every month since the start of this year but most ended with sharp recoveries, achieving newer highs in the following month.