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What is Dead Cat Bounce?
Crypto Glossary Definition
A small price recovery after a large crash, giving an indication of false hope for an ultimately dead asset. Comes from the phrase, 'Even a dead cat bounces once.''
Why Dead Cat Bounce Matters
A dead cat bounce is a short-lived price recovery within an ongoing downtrend, followed by a resumption of the decline — the phrase (grimly) implies that even a dead cat will bounce a little if it falls far enough, warning traders not to mistake the bounce for a genuine reversal.
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