Definition
Buy the dip is a common phrase in crypto and financial markets that refers to purchasing an asset after its price has dropped from a recent level. It reflects the belief that the decline is temporary and that the asset will eventually recover or move higher. The term is closely tied to market sentiment, as it assumes that negative price moves are short-lived within a broader positive outlook.
In crypto culture, buy the dip often appears as a slogan or meme during sharp price pullbacks, especially in the context of a broader bull run. It implies confidence that the underlying trend remains upward despite short-term volatility. The phrase does not guarantee any outcome; it simply labels a behavior pattern where traders or investors treat price drops as perceived opportunities.
Context and Usage
Buy the dip is frequently discussed around areas of perceived support, where participants expect selling pressure to weaken and demand to increase. When market sentiment is optimistic, a price decline into such levels is often framed as a dip rather than the start of a prolonged downturn. The expression captures this collective attitude toward short-term weakness within an assumed longer-term strength.
During a bull run, buy the dip becomes part of the broader narrative that temporary corrections are normal within an upward market cycle. It serves as cultural shorthand for the idea that pullbacks may precede further gains. As a process, it describes the timing of entries relative to recent price declines, rather than a specific strategy or technical method.