Basically I do not understand the reason for so much volatility in the market. Is this volatility a good sign of the market or a bad sign of the market?
This is a bullish sign, and there should be no room for a negative market feeling. Previously, when bitcoin was less than $25K, when the price increased to a certain point, it would then pause and wait for another correction before increasing again, finally beating the previous price it reached before the correction. This has been going on for a while, so it's not a new trend, and it's also a good indicator. In the coming days, if the uptrend would continue we might witness a break through to $33K or higher.