Bitcoin (BTC) Bounces Back Above $57,000 After a Wild Ride Down the Road in the Past Week

The digital currency was down to $54,000 Sunday night before reclaiming $57,000 early Monday, according to CoinGecko data.

Bitcoin recovered to above $57,000 after a wild ride over the past week that saw the world's largest cryptocurrency shedding $3,000 only to reclaim it again.

The digital currency was down to $54,000 Sunday night before rising again to above $57,000 early Monday, data from CoinGecko showed. It was already above $56,000 Saturday before dipping below $55,000 and hovered at around 54,000 Sunday.

Bitcoin is still down by over 8% in the past week and declined by more than 16% in the past month.

The German government's continuing sell-off of its massive Bitcoin stash has been pressuring the market, evident in the bearish sentiment among many smaller holders.

Data from blockchain analytics firm Arkham Intelligence showed that the German government continues to sell its Bitcoins, including 2,000 BTC dumped early Monday.

However, while the fear, uncertainty and doubt (FUD) is palpable among smaller holders of the world's first decentralized cryptocurrency, larger hodlers are buying the dip.

Among the prominent hodlers in the market are El Salvador, Metaplanet, MicroStrategy and Blockstream.

Known as "Bitcoin country," El Salvador has stayed true to its President Nayib Bukele's promise that the country will purchase one BTC daily.

Based on its Bitcoin Office website, El Salvador has been snapping up the coin daily – even when prices were down. The Central American nation now has 5,804.76 Bitcoins.

Japanese tech firm Metaplanet also bought the dip, adding 42.47 BTC to its growing stash Sunday, bringing its total to over 203 Bitcoins.

Bitcoin maximalists, holders of the digital currency who are very vocal about their sometimes "extreme" belief in BTC's potential to overthrow gold in the future, have been hard at work in keeping the sentiment balance.

Former Blockstream executive Samson Mow reminded Bitcoiners that anyone holding the token can sell their stash, so holders should "stop fixating" themselves on MtGox, the collapsed crypto exchange that will start repaying billions worth of BTC to its customers.

"The fact is that Bitcoin supply is constrained, constantly decreasing, and demand is increasing. You should be panicking about not having stacked hard enough."

MicroStrategy founder and executive chairman Michael Saylor said Bitcoin "is engineered to keep winning," alongside a Creative Planning chart that showed BTC still led other assets – by a staggering margin – in terms of cumulative returns since 2011.

Prominent Bitcoin analyst James Check said he is still generally optimistic that the sell-off from the German government and MtGox repayments "would be unlikely to slay the bull."

However, Bitcoiners may also see the coin slumping to $52,000 at worst.

Crypto investor Jelle noted that BTC prices are "pushing back into the range" at this point, and once the asset reclaims $60,000, charts should look much, much better.

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