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What is Bear Trap?

Crypto Glossary Definition

A brief market recovery that gives the allusion of an upcoming bull market, but leads to further downward trends.

Why Bear Trap Matters

A bear trap is a false breakdown — price briefly drops below a key support level, triggering stop-losses and short sellers, before reversing sharply upward. It's the mirror image of a bull trap, and both are reasons technical traders wait for confirmation rather than reacting to the first move past a level.

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