Bitcoin’s dip-to-rally pattern is repeating: a ~7% post-rate-cut pullback followed by rapid recovery, suggesting a potential renewed rally; altcoins near $1.05T face resistance but strong support zones point to buyers preparing for a breakout.
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Bitcoin shows a recurring 7% dip before major rebounds
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Altcoin market cap resists near $1.1–$1.2T with supports at $935B and $783B.
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Analyst charts and historical data suggest dip buyers could fuel the next leg up.
Bitcoin dip-to-rally pattern signals potential rally; read analysis and trade considerations — stay informed with COINOTAG.
Bitcoin repeats its 7% dip-to-rally script while altcoins eye a breakout past $1.2T, boosting trader confidence despite volatility.
- Bitcoin mirrors last year’s 7% dip before rally, fueling hopes of another explosive surge as traders eye strong upside momentum.
- Altcoin market rejects resistance near $1.2T but strong support zones suggest dip buyers are preparing for the next breakout.
- Analysts see repeating Bitcoin patterns and altcoin resilience, signaling growing market confidence despite ongoing volatility risks.
Bitcoin is flashing déjà vu for traders as its September price action echoes last year’s playbook. Analyst Merlijn The Trader compared Bitcoin’s 2024 and 2025 behavior during Federal Reserve rate cuts.
In both years, the cryptocurrency dropped roughly 7% immediately after the Fed announcement before preparing for a major rebound. This repeating pattern is increasing expectations of another significant rally among market participants.
In September 2024, Bitcoin traded near $54,000 before the Fed’s decision triggered a sharp dip. Prices fell 7% but quickly recovered. By December, Bitcoin had doubled, trading near $100,000.
Source: Merlijn The Trader
Merlijn summarized the dynamic plainly: “The script doesn’t change. Weak hands sell the dip. Strong hands ride the explosion.” The same setup appeared in 2025, with Bitcoin retracing about 7% from an $115,000 peak following the Fed’s rate action.
What does the repeating 7% dip mean for Bitcoin?
The repeating 7% dip-to-rally pattern indicates a short-term sell-off often followed by strong recovery, suggesting renewed bullish momentum may follow rate-cut reactions. Traders should watch volume, support zones, and divergence on daily charts for confirmation.
How are analysts interpreting historical percentage declines?
Analysts note that percentage-based pullbacks at differing price levels can reflect similar market psychology. Despite higher nominal prices in 2025, the ~7% retracement mirrors 2024 behavior, implying comparable stop-loss triggers and profit-taking mechanics across cycles.
Chart setups presented by Merlijn highlight green recovery arrows after each dip, showing a consistent rebound pattern. Coinbase pricing data places Bitcoin near $112,144 at the time of reporting, reinforcing that the pattern persists at elevated price levels.
Why are altcoins resisting at $1.2T and what would a breakout imply?
Analyst Michaël van de Poppe noted the altcoin market demonstrated a clear rejection at all-time highs. One more pushback — followed by a successful breach of $1.2T — could unlock a broad-based altcoin advance and new all-time highs for many tokens.
Source: Michaël van de Poppe
The altcoin market cap sits near $1.05 trillion after pulling back from $1.13 trillion. Resistance is concentrated between $1.1T and $1.2T, while robust supports lie at $935B and $783B. Dips toward those supports historically attract buyers building positions ahead of broader rallies.
Frequently Asked Questions
Why did Bitcoin drop about 7% after the Fed decision?
Short-term profit-taking and algorithmic stop triggers often follow rate announcements. A 7% decline reflects rapid repositioning rather than structural weakness; subsequent liquidity and buyer interest can drive swift recoveries.
Will altcoins break $1.2 trillion soon?
Altcoins need a decisive weekly close above $1.2T with rising volume to confirm a breakout. Current price action shows rejection followed by accumulation; a sustained push could trigger broad market participation.
How should traders manage risk during these patterns?
Use defined position sizing, set stop-loss levels at key support zones, and confirm entries with volume and momentum indicators. Diversify exposure and avoid leverage during high-volatility windows.
Key Takeaways
- Recurring pattern: Bitcoin’s ~7% dip post-Fed appears consistent across 2024–2025.
- Altcoin resistance: $1.1–$1.2T is the critical barrier; supports at $935B and $783B matter for buyers.
- Trader action: Watch volume, weekly closes, and divergence indicators before committing to large positions.
Conclusion
Bitcoin’s dip-to-rally behavior and altcoin market structure together highlight a market leaning toward renewed risk-on moves if key levels hold. Monitor price action, volume, and support zones, and consider measured entries—COINOTAG will continue tracking developments and providing timely analysis.
