#ReboundRally Rebound Rally in Cryptocurrency: What Is It?

A rebound rally is a short-term recovery in the price of a cryptocurrency after a significant decline. For example, if Bitcoin drops from $30,000 to $25,000, and then rises to $27,000, this can be considered a rebound rally.

Reasons:

1. Technical support levels — the price reaches a zone where the asset starts to be actively bought.

2. Positive news — the launch of new projects or the acceptance of cryptocurrency by regulators.

3. Panic selling — after a crash, a short-term rise may occur due to the closing of short positions.

4. Actions of major players — "whales" can provoke a recovery by buying up assets.

Features:

A rebound rally is usually short-term, lacks strong fundamental support, and is accompanied by low trading volumes. It is important for traders to distinguish a rebound from the beginning of a sustainable growth to avoid risks.