Bitcoin posted a sharp drop in a volatile trading session, but a quick bounce from the lows has fueled sentiment that ‘buy the dip’ activity is gaining traction in the crypto market.
The world’s largest cryptocurrency fell 4.8 percent to a fresh low of $60,033 on Friday morning before rebounding to around $66,721, up about 5.8 percent in the same session, according to Bloomberg data.
The performance reflected renewed buying interest at key support zones, even as the market remained beset by selling pressure and global sentiment uncertainty.
Other major tokens have also seen similar moves, with Solana plunging as much as 14 percent before erasing all of its losses within hours, signaling the emergence of buyers at lower prices.
Crypto markets have remained fragile since a series of massive liquidations in October that dented investor confidence, as well as being weighed down by deleveraging and broader global market turmoil.
Bitcoin also fell more than 13 percent on Thursday, its biggest daily drop since November 2022, dragging the price down more than 50 percent from its all-time high above $126,000 on October 6.
While Asian market sentiment remained cautious amid thin liquidity, the rapid recovery from the $60,000 level signaled strong support, reinforcing the perception that the ‘buy the dip’ strategy is gaining traction among crypto investors.
