When a cat falls from a height… it also bounces. But it doesn't live.
The market collapses.
Panic.
Blood.
A pak…
small growth.
People say:
> "The bottom is here!"
"We will turn upwards!"
It's back!
But it isn't.
This is: Dead Cat Bounce.
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What is Dead Cat Bounce?
Short growth after a sharp drop that:
looks like a turnaround
but it's just a technical rebound
and followed by another fall
It's not a market return. It's:
> last breath.
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Why does this happen?
🤖 1. Technical purchases
Algorithms react:
to the resold market
at support
at liquidity
Not on reality.
---
🧠 2. Crowd psychology
After the fall:
do you want to hope
do you want to 'save at least something'
are you looking for a signal to return
And you see growth. So you will buy.
---
💸 3. The big ones are looking for an exit
They need:
buyers
volume
liquidity
And you:
> you will provide it to them.
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How do you recognize a dead cat bounce?
⚠️ The reflection is:
weak
without volume
short
⚠️ The fundamentals haven't changed
⚠️ The news is still bad
⚠️ The trend is still down
And yet:
> people are buying.
---
The biggest mistake of retail:
> 'I want to buy the bottom.'
But the market:
> has no bottom until someone creates it.
And that someone:
> it's not you.
---
How to protect yourself?
✅ Follow the trend – not the candle
A green candle does not mean a reversal.
---
✅ After a fall, don't look for entry, but for a reason
If it:
nothing has improved
nothing has changed
so:
> there is no reason for growth.
---
✅ Better late than early
Missed profit:
> hurts less than a caught fall.
---
Conclusion:
Dead cat bounce looks like:
> like hope.
But it is:
> trap.
Who:
hurries back
doesn't want to accept the loss
is looking for a miracle
is usually:
> destroyed a second time.
