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What is a dead cat bounce?

A dead cat bounce is a brief recovery in the price of a falling asset that is soon followed by the decline continuing. The name comes from the Wall Street saying that even a dead cat will bounce if it falls from a great height.

What it means for you

The label is only ever certain afterwards: a rise during a fall can be a bounce or the start of a recovery, and nobody can tell which while it is happening. Treat anyone who claims to know as guessing.

How it works

Binance Academy defines a dead cat bounce as a brief recovery in the price of a declining asset that is shortly followed by a continuation of the downtrend. It traces the term to the phrase "even a dead cat will bounce if it falls from a great height", popularised on Wall Street for temporary recoveries during major market declines.

Source: Binance Academy: Dead Cat Bounce · checked 5 October 2026

Related words

Bear marketTechnical analysisVolatilityPrice prediction

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