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Dead Cat Bounce

A temporary recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.

A dead cat bounce is a temporary recovery from a prolonged decline or a bear market, followed by the continuation of the downtrend. It is an occurrence in markets whereby a security's price, often following a substantial fall, will increase for a period before continuing its overall trend downwards. This concept is applicable to cryptocurrency markets as well.

Example:

A temporary recovery in Bitcoin prices after a significant decline, followed by a further decrease.

Category:

Trading and Markets
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