#ReboundRally

Temporary recovery phenomenon of the Crypto market after a strong decline. This is an opportunity for short-term investors but also comes with risks. This period is also an important milestone for investors to take profits or hold on.

*Causes*

1. Technical adjustment: Prices have dropped excessively, creating buying opportunities.

2. Positive news: Good economic, political, or company information.

3. Buying by investors: Taking advantage of low prices.

*Characteristics*

1. Temporary: Not sustainable.

2. Unclear: Difficult to predict the timing and extent of recovery.

3. Risk: Price trap (bull trap).

*How to identify*

1. Prices rise sharply but are not sustainable.

2. Trading volume increases.

3. Technical indicators show buy signals.

*Strategy*

1. Buy cautiously.

2. Set clear profit targets.

3. Manage risks.

4. Diversify the investment portfolio.

*Note*

1. Do not over-invest.

2. Monitor market information.

3. Update knowledge.

Example: Rebound Rally in the US stock market after the 2008 financial crisis.