Definition ∞ A technical rebound describes a temporary price recovery of an asset following a period of decline, driven by short-term buying interest rather than fundamental changes. This upward movement often occurs when an asset reaches oversold conditions, prompting traders to buy in anticipation of a bounce. It typically represents a corrective movement within a broader downtrend. Such rebounds are often observed and analyzed using technical indicators.
Context ∞ Technical rebounds are frequently observed and reported in the volatile digital asset markets, providing short-term trading opportunities or indicating a temporary respite from bearish trends. News analysis often distinguishes between a technical rebound and a sustained market recovery, emphasizing the underlying factors driving price action. Understanding these movements helps market participants assess the true strength of an asset’s price change.
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