What is bear 🐻 trap ?
And how is it happening?
A crypto bear trap 🪤happens when traders are tricked into thinking the price of a cryptocurrency will keep falling📉, but it suddenly reverses and starts going up 📈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 the price will drop ⏬ even more.
3️⃣ Once enough people sell, the big players buy back at the lower price, causing the price to shoot up again 🚀.
«In short, a bear trap “traps” sellers by tricking them into selling too soon, only to see the price rise afterward. It’s a tactic often used to manipulate the market.»
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