Bitcoin Rebounds Amid Growing Buy-the-Dip Sentiment in the New York Crypto Market

The New York cryptocurrency market saw a strong start on the 29th (local time), driven by growing buy-the-dip momentum. Bitcoin (BTC) experienced a notable 2.45% rise, trading at $112,202, signaling a potential short-term bounce back after recent declines. Although Bitcoin remains 0.69% lower on a weekly basis, it has managed to stay near the $110,000 support level, reinforcing optimism among investors.

Ethereum (ETH) also demonstrated significant upward movement, climbing 2.89% to $4,114 over the past 24 hours. However, its weekly loss sits at 1.94%. The rebound extended across most of the top altcoins by market capitalization, leading to an overall 2.34% growth in the total cryptocurrency market capitalization, which now stands at $3.86 trillion (roughly KRW 5,404.77 trillion).

Bitcoin Leads Recovery with Critical Short-Term Support

After facing a steep correction last week, during which it dropped as low as $108,964—equivalent to a 13% decline from recent highs—Bitcoin is showing resilience. The rebound was influenced by U.S. Personal Consumption Expenditures (PCE) inflation data, which reported a year-on-year increase of 2.7%, aligning with market expectations. This data alleviated fears of aggressive monetary tightening by the Federal Reserve, leading to a rally in risk assets, including Bitcoin.

Market analysts emphasize that for Bitcoin to sustain its upward trajectory, it must break through the $112,000–$114,000 resistance range. Securing this zone could pave the way for the leading cryptocurrency to target the $140,000 level. Conversely, losing momentum may see Bitcoin retreat to $108,000 or potentially test the lower psychological threshold of $100,000.

Altcoins Rally Alongside Bitcoin

The digital asset market’s recovery was not limited to Bitcoin and Ethereum. Key altcoins followed suit, posting notable gains. XRP rose 2.54% to $2.85, while Binance Coin (BNB) saw a 3.18% increase, trading at $1,003. Solana (SOL) surged by 3.40% to $206.50, even though it remains down 7.53% for the week. Cardano (ADA) and Dogecoin (DOGE) also participated in the rebound, gaining 2.51% and 1%, respectively, with ADA trading at $0.7921 and DOGE at $0.2301.

Among standout performers, HyperLiquid (HYPE) emerged as a market favorite with a 4.93% jump to $41.13. Other altcoins, such as Avalanche (AVAX), Stellar Lumens (XLM), and Sui (SUI), posted gains between 2% and 3%, signaling a broad-based recovery within the altcoin sector.

Market Sentiment Shows Signs of Stabilization

Despite the rebound, overall market sentiment remains cautious. The Fear & Greed Index, a measure of prevailing investor psychology, is still subdued at 39, indicating lingering fear in the market. Analysts note that while the buy-the-dip narrative has driven short-term gains, broader demand from institutional investors remains subdued, as evidenced by slowed inflows into cryptocurrency ETFs.

Macroeconomic uncertainties, including speculation about global monetary policies, continue to weigh on sentiment. Consequently, the $100,000–$110,000 range is seen as a critical support zone for Bitcoin, both technically and psychologically.

As the digital asset market seeks sustained recovery, market participants remain focused on whether improving investor confidence and resilient price action can translate into a full-fledged bull rally. The dynamics between macroeconomic influences and cryptocurrency fundamentals are expected to dictate the market's trajectory in the weeks ahead.