What is Dead Cat Bounce?

It is a term used to describe a temporary increase in the price of a currency or financial asset during an overall downward trend.

That is, after the price drops sharply, there is a small upward rebound — but it is temporary — and then the price falls again.

In other words, this rise is not a true reversal, but rather a trap for traders to draw them back into the market and then lead them down again.