- Bitcoin bounces to $103,400, but recovery may be temporary.
- Dip-buying zones sit between $93,000 and $100,000.
The cryptocurrency market is showing signs of recovery following a sharp sell-off, leaving investors questioning whether it’s time to buy the dip or brace for further declines.
Bitcoin Bounce and On-Chain Signals
Bitcoin surged from an intraday low of $99,600 to around $103,400, according to CoinGecko, marking a modest rebound after shedding roughly 25% from its October peak. On-chain analyst Willy Woo noted that liquidity behind Bitcoin is starting to recover, suggesting a potential price confirmation within the next two weeks.
Historical trends hint that such price losses often precede rebounds. CryptoQuant data indicates that 28.1% of Bitcoin’s supply is currently held at a loss. Previous spikes in this metric—27% in April 2025 and a similar surge in September 2024—preceded rallies of 70% and 125%, respectively.
Cautious Optimism Among Analysts
Despite the bounce, experts caution against assuming a full-scale recovery. Shawn Young, Chief Analyst at MEXC Research, emphasized that the current rebound is “technically driven,” supported mainly by spot inflows and short-covering, rather than long-term investor conviction.
For a sustainable recovery, the market needs consistent accumulation by long-term holders and stable funding rates. As Young noted, the current rally may resemble active dip-buying more than a lasting turnaround.
Potential Accumulation and Market Outlook
Some analysts see the $100,000 zone as a potential accumulation range that could support a mid-term recovery into 2026. Jiehan Chen, Operations Onboarding Lead Analyst at Schroders, suggested that Bitcoin’s weekly candlestick needs to hold above $103,000 to maintain bullish prospects. Conversely, in a prolonged downtrend, the dip-buying zone could extend between $93,000 and $88,000.
Alex Thorn from Galaxy Digital has tempered expectations, lowering Bitcoin’s end-of-year target from $185,000 to $120,000 following recent losses. The broader macroeconomic backdrop, including ongoing government uncertainty, could determine whether the relief rally sustains or fizzles.
While Bitcoin’s recent upswing offers hope, the market remains fragile. Investors should watch for long-term accumulation trends and macro catalysts before confidently buying the dip.
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