Dead Cat Bounce? Bitcoin Charts Show This Rally Could Be Different

Bitcoin has teased the bulls several times over the past few weeks, but the charts suggest today's rally might hold more weight.

AccessTimeIconJul 2, 2018 at 6:30 p.m. UTC
Updated Sep 13, 2021 at 8:07 a.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Bitcoin is building on Friday's sharp recovery from lows below $5,800, indicating the corrective rally has more substance than what many presumed to be another "dead cat bounce."

Overall, the premier cryptocurrency jumped to $6,661.76 at 13:00 UTC, a 6.37 percent increase from the day's low of $6,262.28, and was last seen trading at $6,613, according to the CoinDesk Bitcoin Price Index (BPI).

The broader market followed suit, as it usually does when bitcoin (BTC) flexes its muscles. Currently, the total value of all cryptocurrencies stands at $270 billion, having jumped $14 billion in the in the morning hours, according to CoinMarketCap.

Looking ahead, the broader market may remain solidly bid as the world's largest cryptocurrency by market capitalization looks set to test the $7,000 mark, courtesy of a bullish continuation price pattern, as seen in the charts below.

Hourly chart

CoinDesk - Unknown

Having faced rejection at flag resistance in Asian hours, the cryptocurrency was expected to revisit flag support. However, BTC unexpectedly picked up a bid at $6,275, setting stage for a big move on the higher side.

The subsequent bull flag breakout, as seen in the chart above, signaled a resumption of the rally from Friday's low below $5,800, temporarily silencing the "dead cat" critics. Price action now sets scope to $7,065 (target as per the measured height method, i.e. pole height added to breakout price).

What's more, the bullish breakout is accompanied by a rise in volume. So, the gains look sustainable.

Daily Chart

CoinDesk - Unknown

BTC cleared the falling wedge resistance on Friday, signaling a short-term bear-to-bull trend change.

Further, a bullish follow-through to Sunday's inside bar, as seen today, only validates Friday's falling wedge breakout and indicates better times ahead for BTC.


  • The high volume bull flag breakout seen in the hourly chart has likely put bitcoin on the path to $7,000, proving Friday's rally to be the beginning of something more substantial than initially thought.
  • Acceptance below $6,275 (weekly low) would abort the short-term bullish view.

Bitcoin price image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.