What Is a “Dead Cat Bounce” in Technical Analysis?
A "dead cat bounce" is a temporary, brief recovery in the price of a severely declining asset, such as a cryptocurrency or stock. It is a misleading rally that fails to reverse the long-term downtrend.
Traders often mistake it for a true market reversal. The term suggests that even a dead cat will bounce if dropped from a great height.
It is typically followed by a continuation of the bear market.
