The strong bounce in bitcoin over the weekend occurred as shorts covered positions.
Bitcoin broke below $30K. Some analysts see value opportunities while others expect further downside.
The cryptocurrency is expected to hold support above $30,000.
Bitcoin busted out a quick 5% gain early Thursday on positive news from that continent before losing some steam.
For crypto investors who have been in the market a while, volatility is not a bug – it's a feature.
Within two hours of the State Council statement, BTC fell 11%, based on CoinDesk 20 data.
BTC had climbed from $35,709 to as high as $42,441. Then the slide started.
The DeFi-related assets have grown by double digits so far this year.
Bitcoin rode the roller coaster this week, but its overall volatility has been in decline.
JPMorgan expects bitcoin liquidity should recover, though it may take a few days as market conditions stabilize.
Bitcoin’s struggle to retest a key resistance level at $60,000 has “dampened” market sentiment, said one trader.
Slowing bitcoin volume suggests retail traders are less active with their "stimmy" checks compared to 2020.
The BitVol index level puts the cryptocurrency's annualized volatility at 100%.
Many investors aspire to hold bitcoin as a store of value, but right now the cryptocurrency is very volatile, said the head of Fidelity Digital Assets.
Bitcoin's 180-day volatility dropped to its lowest level since November 2018