Bitcoin market is so volatile because there are so many speculating day traders who will grab every opportunity to get some profit. The ICO ban was viewed as news that can negatively impact Bitcoin's price, so a lot of traders saw it an opportunity for shorting, and it caused some panic. But most traders actually still had strong belief in BTC and they understood that the importance of those news was exaggerated. I hope people who panic sell will learn their lesson and start hodling instead of speculating if they are bad at trading.
Usually those that panic during this dip are the newbies who don't know what hit the market causing the price to go down couple of days ago. But since everything has settled down once again, investors getting back at it by buying more making the price to touch $4600. I agree, its gonna be a hard lessons for them. Next time they will know what to do because the best thing is this kind of scenario is really buying instead of selling. They are now regretting their action and most likely they have already bought back bitcoin again and try to hodl.
I agree, since there are always a new comer to Bitcoin community, we cannot avoid this scenario. Most of these newbies panic sell thinking it is doom for bitcoin, But those who had experienced this many times, thinks it is only normal and an opportunity to buy more. It is proven, that bitcoin has the capability to bounce back and maintain its previous sell value and even breaking its ATH after some time.
