Dead Cat Bounce

A temporary, short-lived recovery in the price of a declining asset, followed by a continuation of the downtrend. The term derives from the morbid observation that 'even a dead cat will bounce if it falls from a great height.' In crypto markets, dead cat bounces are common after sharp selloffs, as bargain hunters and automated bots briefly push prices up before selling pressure resumes. Distinguishing a dead cat bounce from a genuine trend reversal is one of the most challenging aspects of technical analysis.