Bear Trap
False downside breakout trapping sellers before a bullish reversal.
Beginner-friendly explanation
A bear trap is a false bearish signal. Price appears to break a key support but quickly reverses. Sellers think the market will fall, but get trapped when it rises again.
Example:
Bitcoin drops below €25,000, many sell, but it suddenly bounces back to €26,500.
Intermediate-level insight
Bear traps often occur at multi-tested support zones. The breakdown triggers stops or short selling, then quick buying pushes the price back up. It's typical of bullish reversals, especially with volume and fast recovery.
Example:
An asset breaks down from an ascending channel, hits secondary support, then reenters the channel with volume: a confirmed bear trap.
Advanced perspective
A bear trap often reflects market manipulation aiming to liquidate longs or bait sellers. It happens at key liquidity zones, showing a fake bearish breakout without follow-through. Advanced traders use precise cues (reclaim, H1/H4 close, order flow imbalance) to spot the trap.
Example:
A token breaks below a range, triggers stops, then forms a Wyckoff “spring” with explosive recovery and rising volume: institutional bear trap.
Technical & Chart Analysis
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