#MarketRebound A market rebound refers to a recovery in asset prices after a period of decline or correction. In trading terms, it often signals a short-term bounce or a longer-term reversal depending on the context.
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✅ Key Features of a Market Rebound:
Aspect Explanation
What it is A significant upward move after a drop in price. Often driven by buying interest, improved sentiment, or external events.
When it happens After a correction, crash, or panic selling. Can be triggered by technical support levels or good news.
Who drives it Buyers re-entering the market: retail investors, institutions, whales.
Types Dead cat bounce (short-lived) or real trend reversal (sustained rally).
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🔍 Indicators of a Potential Rebound:
Oversold Signals: RSI below 30, strong bullish divergence.
Support Levels: Price hitting historical support zones.
High Volume Buybacks: Sudden buying volume spike.
Positive News: Regulatory clarity, ETF approvals, rate cuts.
Whale Activity: On-chain data showing large wallets buying.
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🛠 Example in Crypto:
BTC Drops: From $110K to $95K.
Volume Increases: Buyers step in at $95K.
RSI at 25: Signals oversold.
Price Rebounds: To $102K — a 7.4% recovery.
Is It Real? If price breaks resistance and holds, it may be a true rebound, not just a bounce.
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⚠️ Caution:
Dead Cat Bounce: A temporary rally in a bear market — don’t chase without confirmation.
Confirm Reversal: Use MACD crossover, candle patterns (e.g., bullish engulfing), or trendline breaks.
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