Is Bitcoin doing a dead cat bounce?

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Apologies to cat lovers everywhere, but we didn’t make up the ‘dead cat bounce’ expression, which is market speak for “a temporary recovery from a prolonged decline” or a “a small, short-lived recovery in the price of a declining security, such as a stock.” Basically, the name “dead cat bounce” is based on the notion that even a dead cat will bounce if it falls far enough and fast enough.

What has that got to do with Bitcoin? Well, as you may have noticed BTC has been making a recovery over the last few days, followed by other cryptocurrencies, which is the usual form when Bitcoin goes green. Yesterday, CoinMarketCap reported that the total value of cryptocurrencies stood at $270 billion, having made an impressive $14 billion jump in the early hours of 2nd July.

It is hoped that the bullish trend will continue and that BTC will test the $7,000 mark and that further breakouts will follow this week. There has also been a rise in trading volume, which has kept silenced the critics using the ‘dead cat’ expression — at least, they are quiet for the moment.

Coindesk’s view is that “The high volume bull flag breakout seen in the hourly chart has likely put bitcoin on the path to $7,000, proving Friday’s rally to be the beginning of something more substantial than initially thought.”

Keep your eye on BTC this week and fingers crossed that Coindesk is correct in its prediction.

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