Any time there is a big dip or a big climb you're gonna see a lot of volatility. So you'll see fluctuations b/w 3100 and 3400 or whatever for a while. Who knows what could happen, though? Esp since there seems to be this strategic fud campaign.
True, but this bounce is more telling that "you're gonna see a lot of volatility". All year long we've seen enthusiastic run ups, sharp pull backs and then a bounce that eventually starts the next enthusiastic run up. That bounce is really important, especially since it's happened multiple times this year.
That bounce signifies that there is support for Bitcoin (waiting on the sidelines in the form of cash reserves people or companies have) when the price pulls back. Investors are perceiving the pull back as a sale, not a breakdown.
If this bounce is sustained it could lead to another run up and further strengthen in the market (and to Jamie Dimon and others) that the confidence in bitcoin as a currency, asset, and system is stronger than the criticisim from government or pundits.
Analysts have a hard time understanding the valuation moves of bitcoin, hence they call it a bubble. The fact that BItcoin doesn't have any fundamentals contributes to this fog of understand but also helps Bitcoin because there are no fundamentals that can fall apart (and thus send investors to other investments). Bitcoin doesn't have earnings or debt or (real) competitors. The only negative press is lack of access (i.e., and exchange or countrie's exchanges closing) or lack of knowledge shared in the form of "it's a fraud!" The latter has no base of fact other than to prove that the pundit making the wild claims really doens't understand bitcoin and is acting as irrationally as they believe bitcoin investors are.
