After a violent sell-off, a mean reversion bounce is to be expected.
This magnitude of spike in volatility typically leads to a rotational regime where most tend to chop themselves out getting trigger happy and marrying a biased one-directional thesis without much information.
Letting the market decide where there is excess and what the bracket of the current range is (or not) and will go with the flow.
Excerpt from weekly cookbook - free newsletter published every Monday with Mercury, Magus, Doc and Charlie:

Twitter

Bitcoin's price briefly touched $60,000 last week. Under a diminishing returns model, this is no mere noise. The market is touching the weakest link in the entire four-year cycle and logarithmic growth framework.

With the gains at the top of the Bitcoin cycle already significantly compressed, a further historically deep correction would completely negate the allure of its classic cycles.

This is not a prediction; it's a mathematical law.

Cycle Top Gains are Compressing

Historical Bitcoin Cycle Tops:

· 2013: ~$1,242

· 2017: ~$19,700

· 2021: ~...

$55,000 will be the lifeline for Bitcoin.

The U.S. Department of Justice (DOJ) has announced a 20-year prison sentence for Daren Li, 42, for his involvement in a global cryptocurrency investment scam. Notably, the sentence was...

The ringleader of a cryptocurrency scam worth approximately $74 million has been sentenced to 20 years in prison.

Bitcoin rose as much as 3.3% to $71,000 last night, following the performance of US stocks, but faced heavy selling pressure after the close, currently trading at $70,289. Ethereum briefly broke through […].
The article, titled "Bitcoin and US Stocks Surge to $71,000, Ethereum Fluctuates and Falls Back to $2,150, Bitmine BlockTempo the Opportunity to Buy the dips 80 Million ETH," was originally published on BlockTempo, the most influential ABMedia media.

Bitcoin surged to $71,000, mirroring the rise in US stocks, while Ethereum fluctuated and then fell back to $2,150. Bitmine buy the dips the opportunity to buy 80 million worth of ETH.

New COOKBOOK out now
Magus — Finally pulled the trigger on this
Doc — 3 ways to buy the bear market lows
Charlie — Anything worth watching?
Stoic — Short-term opportunities
Mercury — What I’m expecting from here
read below 👇

One way of thinking about is that there was a ton of energy released on that sell-off and it takes time for such an imbalance to resolve (markets spend more time ranging).
Conservation of energy -> stored potential energy released into kinetic energy - back to building up potential energy.
The compressed spring was released and it will now just oscillate about the mean and compress once again until there is new information or there is enough positioning built up on one side or another to unravel into.