#MarketRebound
📈 "The Rebound" in the market does not necessarily mean an opportunity for profit... Sometimes it's just a trick similar to a child saying: "I didn't take anything from the fridge" while cake crumbs are on their face! 🍰😅
Many traders, as soon as they see a green candle after a sharp drop, rush to buy thinking that the market has started to rise again. But the truth? It could just be a "dead bounce" or what is known as Dead Cat Bounce 🐱💀.
🔍 Take a real-life example:
After the price of Ethereum dropped from $3900 to around $3400, a strong reversal candle appeared. Some thought it was a signal to rise, but those who monitored the trading volume realized that the buying momentum was weak, indicating that the movement might be temporary and not backed by strong fundamentals.
⚠️ Here are some questions you should ask yourself before making a buying decision at the moment of a rebound:
Does the trading volume support this rebound?
Has a significant resistance level been broken?
Is the overall market context bullish or is this just a short correction within a downtrend?
🎯 In short: Entering the market just because a green candle appears, without checking the data, is like jumping into the sea just because you see bubbles... it could be a fish, or it could be a shark 🦈
#MarketRebound
#ETHUSDT
