What is a bear trap 🐻?

And how is it happening?

A bear trap in crypto 🪤occurs when traders are tricked into thinking that the price of a cryptocurrency will continue to fall📉, but it suddenly reverses and starts to rise 📈instead.

Here's how it works:

1️⃣ Big players (whales) 🐋or groups of traders push the price down quickly, making it look like a strong downtrend.

2️⃣ This scares other traders, who sell their crypto, thinking that the price will fall ⏬ even further.

3️⃣ Once enough people sell, the big players buy back at a lower price, causing the price to spike again 🚀.

«In short, a bear trap “traps” sellers by tricking them into selling too early, only to see the price go up afterwards. It is a tactic often used to manipulate the market.