Crypto Speak: Bear trap and bull trap

We may be in a “bull trap” right now: this is when the market starts to grow and everyone thinks that the growth is unstoppable. People buy crypto in the hope of growth, and then the “trap” collapses—i.e., the market rolls back and traders lose money.

Similarly, with a “bear trap,” when the market falls, traders open short positions, but investors still won’t buy the coins because they know that prices will dip even lower.

Of course, when the market suddenly starts to rise at this moment, the bear trap takes hold.