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The cryptocurrency market saw a brief rebound, rising more than 1% in the last 24 hours. Bitcoin (BTC), along with most of the 20 most popular cryptocurrencies, is in the green.
However, analysts warn that the current rally could be a temporary rebound known as a “dead cat bounce,” which is a short-term price recovery during a larger downtrend.
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Technical analysts point to a dead cat jump pattern in Bitcoin
According to data from BeInCrypto Markets, Bitcoin rebounded to a high of $89,000 on Monday, following a rebound over the weekend. At the time of writing, the price has been revised to $87,755. These represent modest gains of 0.23% over the past day.
Technical analysts remain cautious. Cryptocurrency analyst, Elga, analyzed Bitcoin technical setup on the weekly chart Then down to $82,000.
He emphasized that the short-term increase after a sharp decrease often gives traders false hope that the bull market will return. According to Elga’s analysis, $98,000 has become a vital level for the immediate trend of Bitcoin.
“After a big drop, you often see a quick rebound, like a “dead cat”, which does not mean that the bull market will return immediately. Keep an eye on the $98,000 level. It was previously support and could now turn into resistance,” said the analyst.
Elga also warned that failure to close above $98,000 would likely confirm downside. If this happens, Bitcoin could fall further Towards the support area at $75,000.
However, a weekly candle close above $98,000 could indicate a refutation of the dead cat theory and suggest new bull market momentum.
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Market analyst Ted Bellows As described The recent price increase is described as a “relief bounce” and not a major change in sentiment. He noted that brief bounces often ignite renewed optimism among traders.
However, this quickly fades into a strongly negative market structure. Bellows stressed that the broader trend is still on the rise.
Market commentator “Titan of Crypto” said: to Bitcoin shows a strong reaction to the Senkou Span B (SSB), which is the lower limit of the bullish Ichimoku Kumo cloud. He warned that even if there is a rally, “it will probably be a dead cat rebound”, similar to the patterns seen in 2022. Titan stated that the bearish scenario will be negated only if Bitcoin completely regains the cloud and remains above.
At the same time, another market observer To highlight A possible head and shoulders shape appears on the monthly chart for BTC. This is a classic bearish pattern that often indicates exhaustion in a trend and the potential for a deeper reversal if the neckline is broken.
However, not all analysts agree With this combo. Analyst Peter Anthony believes that traders will continue to label each jump as “dead cat bonce”, even as Bitcoin advances towards the $100,000 region.
He recognized the possibility of a correction in the path of the highs, but he believes that the bearish calls will be misplaced.
Anthony said what you do “The dead cat rebound will be faked and the FOMO will go away after BTC reaches $115,000+. This means that most of them took maximum losses by selling last week and will wait to buy after the recovery is complete.”
BeInCrypto also reported that many analysts They call it Bekaa, indicating that the worst may be over for the largest digital currency. Therefore, the next few weeks will be crucial for the Bitcoin market trend. Whether Bitcoin continues to rise or fall further remains a matter of interest.
