Is a Dead Cat Bounce Coming for Bitcoin?

The cryptocurrency market is no stranger to prolonged bear cycles, but Bitcoin’s current price action has caught the attention of traders and analysts alike. According to TradingView data, Bitcoin has now printed five consecutive red monthly candlesticks, marking one of the longest bearish streaks in its history.
The only longer sequence occurred between August 2018 and January 2019, when Bitcoin closed red for six consecutive months during the aftermath of the ICO bubble burst. That period became a defining moment in crypto history, eventually leading to a strong recovery phase.
What makes the current situation particularly interesting is that Bitcoin has never recorded seven consecutive red monthly candles. Historically, extreme bearish momentum tends to exhaust itself before extending indefinitely. Even during deep bear markets, price often experiences temporary relief rallies—commonly referred to as a dead cat bounce.
A dead cat bounce does not necessarily signal the end of a bear market. Instead, it represents a short-term recovery driven by oversold conditions, short covering, or brief improvements in market sentiment. In many cases, these bounces offer traders temporary opportunities while the broader macro trend remains uncertain.
With fear already heavily priced in and sentiment near historical lows, the probability of a relief move increases. Whether this bounce turns into a sustained reversal or simply a pause before further downside will depend on macroeconomic factors, liquidity conditions, and on-chain data in the coming months.
For now, Bitcoin sits at a critical point in its market cycle. History may not repeat perfectly, but it often rhymes—and the current setup suggests that a reaction move could be closer than many expect.