Share this article
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.
By Sam Ouimet
Updated Sep 13, 2021, 8:07 a.m. Published Jul 2, 2018, 6:30 p.m.
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).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The broader market followed suit, as it usually does when bitcoin 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
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
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.
View:
- 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
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Farcaster Switches to Wallet-First Strategy to Grow Its Social App
The protocol still consists of casts, follows, reactions, identities and wallets, and third-party clients are free to emphasize whichever components they want.
What to know:
- Farcaster is shifting its focus from social media to its in-app wallet and trading features to drive user engagement.
- Cofounder Dan Romero acknowledged the lack of sustainable growth in their social-first strategy over the past 4.5 years.
- The wallet's trading tools have shown the strongest product-market fit, leading to a strategic pivot towards financial use cases.
Top Stories
