Bitcoin touched its all-time high of $31K which is the 2023 market high. When the market reached $31K we had an idea that the Bitcoin market would soon reach $100K.
Thinking like this, suddenly the market was running down gradually. At other times, the market usually goes down very slowly, but during this period, the market started to go down very quickly and gradually, on 23-04-24 at 22:00, the price of Bitcoin reached $26,942.
After reaching $26,942, the Bitcoin market started to turn positive again. And by today very quickly the Bitcoin market reached $30,036.
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?
The market volatility that played out this past days is psychologically related. What I mean by this is that, just like the bitcoin price drop down to $26,942 on 23-04-2023 and later pulled up to $30,036 within a few time. This action action by the market price must have triggered some fears in the minds of many trading during the price fall, especially for those that might have bought when bitcoin price was $19k - $20k around March, and seeing price going down again after some few rising, out of fear some might have been forced to close their trade within the little profit position to take a little profit.
And that's exactly what the market wanted. The volatility is just a test of the strength of the market psychology of many traders. A technical way to make more profit in such situation is to DCA, and that was exact action I took immediately I observed a double bottom chart forming, because the volatility from my observation is a positive sign on the market price.