Judging whether a "bear trap" has occurred requires a comprehensive analysis of the current market situation, the trends of technical indicators, and changes in trading volume.
What is a "bear trap"?
In simple terms, a "bear trap" is when market makers intentionally cause prices to drop in the short term, creating panic and scaring retail investors into selling their holdings. Then, the market makers take the opportunity to buy at a low price, preparing for a subsequent rise.
Characteristics of a bear trap:
Prices quickly break through key support levels: On the surface, it seems like the market is about to plummet, but it quickly rebounds.
Changes in trading volume: Trading volume increases during the decline, while during the rebound, the transaction volume noticeably rises, indicating that large funds are accumulating shares at lower levels.
In simpler terms:
A bear trap is like scaring people; market makers intentionally use short-term declines to pretend the market is getting worse, with the aim of getting retail investors to sell at low prices. To determine whether it is a bear trap, one can observe whether the price falls quickly and then bounces back, as well as whether there are unusual changes in trading volume. #BTC重返10万