A rebound is an event that occurs in the stock market where the price starts to rise again after a previous decline. To find out more, you can read the following article. Be sure to follow GIC's Instagram – GICTrade, to stay updated on the forex calendar, morning briefs, analysis, and more.

Rebound Is?

A rebound is an event that occurs in the stock market where the price starts to rise again after a previous decline. A rebound could occur for the market as a whole, as indicated by the S&P 500, or by specific market segments, such as technology or energy stocks.
 
A rebound can also occur in one company that once experienced a decline in stock price and is now experiencing an increase. The stock market has recovered from every decline in history so far. One of the clearest examples of the stock market's ability to bounce back is the rebound that occurred after the famous 1929 stock market crash before the Great Depression.

In the years leading up to 1929, stock prices increased dramatically, although other parts of the economy began to suffer. This series of events resulted in a stock market crash that lasted for four days, starting on Black Thursday and ending on Black Tuesday. While October 29, 1929, was the day of the stock market crash, the market continued to fall for the next few years before finally reaching its lowest point in 1932.
 
But after that low market, the market began to recover very slowly. Overall, analysts suggest it will take more than 25 years for the market to fully recover from the crash.

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What is the rebound in the economy?

In finance and economics, a rebound refers to a recovery from a previous period of activity or negative losses—such as a company posting strong results after a year of losses or introducing a successful product line after struggling with a false start. In the context of stocks or other securities, a rebound means that the price has risen from a lower level. For the economy in general, a rebound means that economic activity has increased from a lower level, such as a rebound after a recession.


What is a stock rebound?

The stock market has historically experienced ups and downs. Sometimes it may go down for a variety of reasons, but stock prices have historically rebounded. A rebound is when the market starts moving in a positive direction after a decline in stock prices. The stock market experienced a decline and subsequent rebound in 2020, as a result of the COVID-19 outbreak and the resulting economic turmoil. Some market forces may cause the market to rebound even when other economies may not perform well. For example, the rebound after the initial outbreak of COVID-19 occurred when unemployment was still high.


Rebound Crypto Is?

Sekilas-Tentang-Rebound

Not much different from other definitions of a rebound, a rebound in crypto is an event that occurs in the crypto market where prices start to rise again after a previous decline. The real star of the crypto market rebound is Ethereum or Ether (ETH), the second digital currency by market value.
 
Over the past seven days, ETH has gained more than 7% and is currently trading around $1,700 with a market value of $203.6 billion at the time of writing. ETH represents 18% of the cryptocurrency market.
 
The wind of optimism is currently blowing in the direction of ETH. The reason is simple: the Ethereum ecosystem, which allows payments to be made using the native cryptocurrency ETH, is on track to achieve the biggest update, called the Merge, in its history scheduled for September 19.

Bitcoin and Ethereum are fundamentally different in that the former is designed to enable decentralized finance while the latter is designed to also enable applications and contracts. 
 
Both systems use blockchain technology to validate and record transactions, but the upcoming changes in the way Ethereum operates will mean that the way they do so is different, with consequences for speed, durability, reliability, and accessibility.

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Example of Rebound Crypto

Here are some examples of rebounds in crypto coins. You can see this example below.


Example of Rebound Ethereum

Ethereum's native token, Ether (ETH $1,339), looks poised for a massive rally due to a combination of technical and fundamental factors. From a technical perspective, the ETH price is now eyeing a 35% rebound at the end of October after testing a key support level. This level is an uptrend line that has limited Ether's downward efforts since June 2022, as shown below.

rebound ethereum Weekly price chart

ETH/USD. 
Source: TradingView In other words, traders have shown interest in buying Ethereum tokens near these levels in recent weeks. Meanwhile, the accumulated sentiment has pushed the price to rise towards another significant level — horizontal trendline resistance near $1,800, about 35% above the current price.

  rebound bitcoin


Example of Rebound Bitcoin

Bitcoin's price chart shows a midday cryptocurrency rebound on Thursday. (Coin Table) Bitcoin rebounded above $19,000 on Thursday in a wild trading day that had earlier seen the biggest cryptocurrency decline after a hotter-than-expected U.S. inflation report.

Analysts struggle to explain the logic of the move, as the Consumer Price Index report theoretically puts additional pressure on the Federal Reserve to continue tightening monetary policy – usually a negative factor for the prices of risky assets from stocks to cryptocurrencies. U.S. stocks also made a comeback, and investors in traditional markets said the possibility of negative news had been factored in by traders.
 
At press time, bitcoin (BTC) is up 0.2% over the last 24 hours to around $19,100. Within minutes of the inflation report at 08:30 ET (12:30 PM UTC), the price fell to $18,198 – the lowest since September 21 – but has mostly risen in the hours since. The CoinDesk Market Index fell 1.1%. Ether (ETH) followed the same trajectory on Thursday as BTC, falling in early U.S. trading hours and then recovering by midday.
At press time, it was down 0.9% to $1,280. Thursday's trading story began when the Labor Department released the CPI report, which showed that the inflation index rose 8.2% in September, which was faster than the 8.1% expected by economists. Some market watchers note a more striking number – the "core" CPI which excludes volatile food and energy prices.
 
The index rose 6.6% year-on-year to its highest level in four decades — a worrying sign that inflation may become more entrenched in the economy. But then, starting around 11:05 a.m. ET, stocks rallied, with the S&P 500 up 1.3%, the Nasdaq up 0.8% and the Dow Jones up 1.8%, according to the Wall Street Journal's data index. The Crypto market comes for a ride.

Despite the midday swing in stocks and crypto, investors in the money markets clearly see the report as hawkish: The trading of federal funds futures on the CME reflects a 97% chance of a 75 basis point (0.75 percentage point) rate hike at the Federal Reserve. the next monetary policy meeting in November; That large increase is three times the Fed's more common 25 basis point hikes in the previous interest rate cycle.

Data from CME Group even now shows investors are pricing in a 3% chance of a 100 basis point rate hike – practically unheard of since the era of high inflation in the early 1980s. By knowing the term rebound, you can understand several terms in trading. You can learn other terms through the GIC Journal. If you are sure that you already know about the terms in trading and want to start trading with a small capital, you can start trading on GIC with a capital starting from IDR 150,000!