BRVX Glossary · Dead cat bounce · Updated September 25, 2026
A dead cat bounce is a short-lived recovery in a falling asset, after which the decline resumes and price makes a new low. The name comes from the saying that “even a dead cat will bounce if it falls from a great height”; bounces of 10–20% inside a larger fall are typical.
On this page
How it looks
- A steep fall, often on bad news or forced selling.
- A sharp rebound on lighter volume than the fall.
- The rebound stalls at a former support level, now acting as resistance.
- Selling returns and price breaks below the previous low.
Bounce or bottom?
A bounce that fails below the level where the fall began, on shrinking volume, fits the dead-cat pattern. A real bottom usually builds over time: a higher low, then a break above the rebound high on rising volume. The label can only be applied for certain once the new low is in.
Why traders get caught
Rebounds pull in buyers who fear missing the bottom and shorts who cover to lock in gains. Both leave when the move fades. Long positions opened on the bounce without a stop are exposed to the next leg down.
On BRVX
On BRVX a bounce can be traded either way on any of the 41 markets — long for the rebound or short for its failure. Positions start at 5x leverage, so the stop should sit beyond the level that would prove the idea wrong, not at an arbitrary percentage.
Questions about Dead cat bounce
How long does a dead cat bounce last?
From a few hours to a few weeks; it ends when the downtrend resumes.
How can you tell a dead cat bounce from a reversal?
Only afterwards for sure; weak volume and failure at old support point to a bounce.
Why is it called a dead cat bounce?
From a Wall Street saying that even a dead cat bounces if dropped from high enough.
Dead cat bounce: next steps on BRVX
Dead cat bounce with leverage: SUI/USDT allows 5x to 100x; at its 50x default, 1% equals 50% of margin. Set TP / SL before opening.
Read next: Bear market, Capitulation and Bull trap.
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