The Market Traps: How Not to Fall into Them

Have you ever seen the price of a crypto rise sharply, buy convinced that it is going to explode… and then it plummets? Welcome to bull traps. The opposite also happens: the price drops, you sell scared… and it rebounds like a rocket. That is a bear trap.

These traps are the most messed up in trading. The big players set them up on purpose to take your money. Let's see how they work and how not to fall for them.

Bull Trap: The Deception of the False Bounce

Let's imagine that Bitcoin was at 40k, drops to 38k, and suddenly:

• 📈 Break through the 40k (resistance)
• 😍 Everyone sees that “it's breaking!”
• 🤑 Millions of buy out orders are arriving
• 😱 But… it drops suddenly to 37.5k

Why does it happen?

• Very low volume (nobody really wants to buy out)
• The market was overloaded (overbought)
• The big (whales) pushed the price up and left

Bear Trap: The Opposite but Just as Painful

Same situation but the other way around:

• 📉 The price drops below the support (let's say 38k)
• 😨 Total panic, everyone is selling
• 💸 Stop-losses are triggered in cascade
• 🚀 The price rebounds as if none of that happened

Why? Market oversold, lack of real bearish pressure, manipulation.

How to Differentiate Them (The Quick Guide)

1. Volume is your friend

• Real breakout = HIGH volume
• Trap = miserable volume

2. Wait for confirmation

• Does it stay above/below for 2-3 candles?
• If yes → it's real. If no → trap.

3. Market Context

• Bull trap = usually occurs in bearish trends
• Bear trap = usually occurs in bullish trends

4. Technical Indicators

• RSI very high (>70) = beware, possible bull trap
• RSI very low (<30) = beware, possible bear trap

How Not to Lose Money

✋ Patience: ALWAYS confirm before entering.

🛑 Stop-loss: If you enter, protect yourself. Always.

🔍 Mix analysis: Don't just rely on charts. Read news, look at on-chain data.

📚 Learn from mistakes: Every failed trade teaches you something.

The secret: In crypto ( and in any market ), patience kills hunger. It's not who enters the fastest, but who pays the least.