Ethereum (ETH) has seen a strong recovery over the past 24 hours (up nearly 10%) to $1,155.82 as US buying on July 4 reinforced that gain.
That’s why we talk about “dead cat rebound”. And the fact is that this expression, in a few words, is synonymous with the rise, rebound, a small and short-term recovery in the price of an asset that was very low.
The phrase comes from the saying “Even a dead cat will jump if it falls from a great height” which is of course not Spanish. It came from the USA and originated on Wall Street. it was usually applied to situations where a small return can be seen during a big fall.
In the early stages of a dead cat bounce pattern, it can be mistaken for a trend reversal. Let’s not get confused because one has little to do with the other and can lead to a suicidal investment.
In this case, we are talking about a downward movement followed by a significant price rollback. Then, however, we can find a new and quick pullback, the price will stop rising and the downtrend will continue, breaking even previous levels and creating new lows.
And it lies in the fact that, given the weakness of the cryptocurrency sector, as well as the economy as a whole, this rise can be very short-lived. While both ETH and bitcoin have shown slight recovery over the past 24 hours, they are still trading down 68% and 56% year-on-year, respectively. Therefore, any immediate market recovery is likely to be short-lived.
Source: Computer Hoy
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.