Dead Cat Bounce
Definition
Dead Cat Bounce refers to the situation of a short-term recovery after a sudden decline in the markets and is generally followed carefully as it is not a sign of a permanent recovery.
A Dead Cat Bounce is defined as a short-term recovery following a sudden and significant decline in financial markets. This term refers to situations that are viewed as a temporary improvement in the market and are not generally considered the beginning of a permanent uptrend. Analysts often note that after a dead cat bounce, prices may begin to fall again and the downtrend may continue. Therefore, investors continue to evaluate potential risks in the markets while taking the dead cat bounce into account.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
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The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
The glossary covers a wide range of topics from trading and DeFi terms to blockchain infrastructure and market indicators. You can find terms via search or the term list. Use the related terms section to discover related concepts.
