Crypto:
37087
Bitcoin:
$69.787
% 1.34
BTC Dominance:
%58.7
% 0.11
Market Cap:
$2.36 T
% 2.57
Fear & Greed:
14 / 100
Bitcoin:
$ 69.787
BTC Dominance:
% 58.7
Market Cap:
$2.36 T

Is the Buy-the-Dip Sentiment Making a Comeback?

Bitcoin altcoin

After the sharp price declines seen in recent weeks, signals are emerging that buy-the-dip behavior is gaining strength again in the cryptocurrency markets. Total crypto market capitalization fell to around $2.0 trillion last Friday before rebounding above $2.3 trillion. This recovery suggests that investors are beginning to view the recent decline as an opportunity. However, the key question remains: Is this the start of a lasting recovery, or just a limited relief rally?

Stablecoin Inflows Point to Dip-Buying Behavior

One of the earliest and most notable signals in the market has been the renewed flow of stablecoins into centralized exchanges. After months of persistent outflows, this reversal indicates that investors are preparing to re-enter positions. According to on-chain data from CryptoQuant, the 7-day average of ERC-20 stablecoins flowing into Ethereum exchanges rose from around $51 billion at the end of December 2025 to $102 billion in the most recent data. This figure is also well above the 90-day average of $89 billion, indicating that capital deployment has accelerated in recent weeks.

Whales and Institutional Wallets Move into Accumulation

Another key indicator supporting dip-buying behavior is the activity of whales and institutional wallets. Glassnode’s Accumulation Trend Score, which measures buying and selling behavior across different wallet sizes on a scale from 0 to 1, shows that many wallet categories have moved from weak accumulation zones below 0.5 to stronger accumulation levels above 0.5 over the past two months. Wallets holding 10–100 BTC stand out as the most aggressive buyers, with scores approaching 1, signaling strong accumulation. On-chain analytics firm Lookonchain has also reported repeated whale accumulation not only in Bitcoin but in Ethereum as well.

Why Are Key Support Levels So Important?

Despite these positive signals, the sustainability of the recovery still depends heavily on key technical levels. Popular analyst Daan Crypto Trades notes that total crypto market capitalization (TOTAL) has reclaimed levels that were tested as support during the April 2025 lows. According to the analyst, holding above $2.3 trillion in the coming days could support expectations of a stronger recovery toward $2.8 trillion:

“I think this is a critical area the market needs to hold if it wants to continue the recovery move.”

For Bitcoin specifically, the $71,000 level is highlighted as a crucial support zone. If BTC can maintain stability above this level, the probability of a broader and more sustained market recovery increases.

Assessment

Rising stablecoin inflows, whale accumulation, and efforts to hold key technical levels all suggest that the buy-the-dip sentiment is returning to the crypto market. However, for a sustainable upward trend to take shape, total market capitalization must continue to defend critical levels, and Bitcoin must remain above its major support zones. While short-term recovery signals are strengthening, the overall direction of the market will largely depend on whether capital inflows continue.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

Leave a Reply

Your email address will not be published. Required fields are marked *