Definition ∞ Investor Dip Buying describes the strategy of purchasing assets after a significant price decrease, with the expectation that the price will rebound. This behavior is driven by the belief that the current low price represents a temporary market correction or an attractive entry point. It is a common strategy employed by market participants who anticipate a recovery from a downturn. This activity can provide support to asset prices during periods of weakness.
Context ∞ News often reports on investor dip buying during market corrections or bear markets, highlighting signs of renewed interest from long-term holders. On-chain data, such as an increase in accumulation addresses during price drops, can indicate this behavior. The extent of dip buying can influence the speed and strength of a market recovery. This strategy is frequently discussed as a potential indicator of underlying market strength and confidence in an asset’s future.
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