{"id":254342,"date":"2021-05-20T12:17:28","date_gmt":"2021-05-20T09:17:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\/"},"modified":"2021-05-20T12:17:28","modified_gmt":"2021-05-20T09:17:28","slug":"why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\/","title":{"rendered":"#Why Bitcoin price rebounding to $40K is anything but a &#039;dead cat bounce&#039;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40f0f7b1a99\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40f0f7b1a99\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\/#A_bounce_like_no_other\" >A bounce like no other<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\/#Leveraged_players_learn_the_hard_way%E2%80%A6_again\" >Leveraged players learn the hard way&#8230; again<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\/#Extreme_fear_challenges_Bitcoins_darkest_days\" >Extreme fear challenges Bitcoin&#8217;s darkest days<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Why Bitcoin price rebounding to $40K is anything but a &#039;dead cat bounce&#039;<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvNjEyOTVjNzktMGIyMC00OThkLTlhNjUtYjJiZGI4OTYwOGFhLmpwZw==.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                BTC price action effectively knocks down and rebuilds the market, while holding onto its $10,000 gains.\n                &lt;p&gt;Bitcoin (BTC) saw a dip like no other on May 19, falling to $30,000 in a frantic three-hour shakeout which upended the market.\n<\/code><\/pre>\n<p>As the dust settles, however, it&#8217;s no longer about the dip, but rather the recovery \u2014 what makes current BTC price action special?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_bounce_like_no_other\"><\/span>A bounce like no other<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It took around one hour for BTC\/USD to go from $39,000 to $30,000 on Wednesday. This is a formidable drop, but nothing unheard of when it comes to historical price action.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/359f0b61-e045-47ae-9efa-890e91bdedbc.png\" alt=\"\" title=\"\" \/><figcaption style=\"text-align: center\"><em>BTC\/USD price corrections from highs chart. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>In dollar terms rather than percentage, however, that hour was unlike anything seen before. Even during the Covid-19 crash in March 2020, Bitcoin&#8217;s 60% correction was smaller when measured in USD.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a>: Officially a +50% correction. <\/p>\n<p>First one in more than a year.<\/p>\n<p>&mdash; David Puell (@kenoshaking) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kenoshaking\/status\/1395000963132428289?ref_src=twsrc%5Etfw\">May 19, 2021<\/a><\/p><\/blockquote>\n<p>If that weren&#8217;t enough, what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened next was even more unusual.\u00a0<\/p>\n<p>After bouncing at exactly $30,000, Bitcoin shot up to $37,000 almost immediately, going on to crack $40,000 shortly after. This was the biggest rebound ever seen, squarely beating March 2020 in both percentage and raw USD terms.\u00a0<\/p>\n<p>As skeptical sources <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/news\/dead-cat-bounce-underway-bitcoin-154401082.html\">called<\/a> a &#8220;dead cat bounce,&#8221; Bitcoin held fast, still circling at around $39,000 over 12 hours after the bounce at the time of writing.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/334f8c01-7040-4639-847b-6050bd9f6844.png\" \/><figcaption style=\"text-align: center\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Leveraged_players_learn_the_hard_way%E2%80%A6_again\"><\/span>Leveraged players learn the hard way&#8230; again<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin&#8217;s market composition changed over the past 24 hours, and is now likely made up of a different class of trader.<\/p>\n<p>This is due to the veracity of both the dip and the recovery \u2014 in total, daily liquidations among traders totaled over $8 billion.<\/p>\n<p>This was also far from a rare occurrence, as price volatility regularly claims the wealth of large numbers of leveraged traders in particular. Due to the size of the dip in USD, however, anyone with a long bet likely got frozen out of the market with nothing.<\/p>\n<p>The way back up likewise took care of those banking on a further retracement toward the old all-time highs of $20,000. Support levels, order book data showed at the time, were broadly absent below $30,000, meaning that such a scenario was a real possibility.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/81f233da-1046-49f0-8c50-13f6299c58f1.png\" \/><figcaption style=\"text-align: center\"><em>BTC\/USD buy and sell positions (Binance) as of May 20. Source: Material Indicators\/ Twitter<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Extreme_fear_challenges_Bitcoins_darkest_days\"><\/span>Extreme fear challenges Bitcoin&#8217;s darkest days<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Just how nervous traders have become as a result of recent events is showed by the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>.<\/p>\n<p>The classic sentiment indicator dropped to just 11\/100, firmly within its &#8220;extreme greed&#8221; zone and its lowest reading since April 2020.\u00a0<\/p>\n<p>Fear &amp; Greed was at 73, or &#8220;greed,&#8221; as recently as May 9, making its own drop something of a unique event in its existence.\u00a0<\/p>\n<p>The implication, therefore, is that sentiment around cryptocurrency is currently unduly skewed to the downside, with a correction of oversold token prices expected.<\/p>\n<p>&#8220;Bitcoin at 40k and appetite for risk is still rock bottom,&#8221; popular Twitter account Bitcoin Archive <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BTC_Archive\/status\/1395293508215447556\">commented<\/a> on the Index. <\/p>\n<blockquote><p>\u201c&#8217;Buy when others are fearful.&#8217;\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/9b244ecf-1e44-4aa4-8782-98acd5d952fd.png\" \/><figcaption style=\"text-align: center\"><em>Crypto Fear &amp; Greed Index. Source: Alternative.me<\/em><\/figcaption><\/figure>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-bitcoin-price-rebounding-to-40k-is-anything-but-a-dead-cat-bounce\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Why Bitcoin price rebounding to $40K is anything but a &#039;dead cat bounce&#039;&#8221; BTC price action effectively knocks down and rebuilds the market, while holding onto its $10,000 gains. &lt;p&gt;Bitcoin (BTC) saw a dip like no other on May 19, falling to $30,000 in a frantic three-hour shakeout which upended the market. As the dust&#8230;<\/p>\n","protected":false},"author":1,"featured_media":254343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvNjEyOTVjNzktMGIyMC00OThkLTlhNjUtYjJiZGI4OTYwOGFhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-254342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/254342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=254342"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/254342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/254343"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=254342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=254342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=254342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}