$FHE How Whales Trap Others with a Fake Bull Market
Whales (big holders/investors) often manipulate market psychology to trap retail traders. A “fake bull market” (sometimes called a bull trap) tricks people into buying before the price dumps again.
Here’s the step-by-step:
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1. Accumulation in Silence
Whales quietly buy at low prices during a boring or bearish market.
Retail investors are scared, so they sell cheap.
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2. Pump with Volume
Whales suddenly push the price up with big buy orders.
This creates the illusion that a new bull market has started.
Social media hype, influencers, and news amplify the FOMO.
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3. Retail Rushes In (FOMO Zone)
Small traders see the breakout and jump in late.
Many believe “the bottom is in” and this is the start of a strong bull run.
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4. Whales Start Distributing
While retailers are buying, whales are quietly selling (distributing) their bags at higher prices.
They make profit by offloading their holdings to late buyers.
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5. Dump & Liquidity Grab
Once whales have sold enough, they stop supporting the price.
The market crashes quickly, triggering stop-losses and liquidating leveraged traders.
Retail gets trapped holding the bag, while whales rebuy cheaper later.
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Example (Typical Trap Signs):
Sudden pump after long sideways action.
Very high volume spike without strong fundamentals.
News/rumors perfectly timed with the pump.
Sharp rejection after breaking a “key resistance” (fake breakout).
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👉 In short: They create hope, attract buyers, then pull the rug.
