Bear Trap đ
A bear trap is a situation in the financial markets, particularly in the stock or cryptocurrency markets, where the price of an asset shows a false signal of a downward trend. This can trick traders into believing that a bearish trend is underway, causing them to sell off their assets. However, after they sell, the price rebounds sharply, leaving those who sold at a loss. In other words, it "traps" bearish investors by reversing after they commit to the short side.
Bear traps can be created by large traders or institutions manipulating the market or can occur naturally due to market conditions. They often result in significant losses for those who fall into the trap.
