The Importance of Identifying A Bull Trap And Bear Trap In Cryptocurrency

[kannikaamudee]

It is not surprising that many are drawn to the allure of the risky state of cryptocurrencies as the cryptocurrency is seen as a complex and sophisticated technology that has made lots of people rich. Some of crypto traders are finding a new source of income through cryptocurrency trading, knowing the fact that many people have already earned thousands and millions of money from it.

Unfortunately, in crypto trading there are so called "the bear trap and bull trap". It's considered as one of the commonly occurring patterns that most traders dread. We all need a long patience in bull and bear traps we also need to be prepared for the bull and bear traps and to watch for price action near the top of an uptrend and bottom of a downtrend always keep this in mind.

It's really important to identify a bull and bear trap in cryptocurrency in order to understand the false patterns on it.


Understanding bear and bull trap can really change the way a trader make decisions. Read it now here:  https://kucoinblog.com/identify-bull-traps-bear-traps-sk-bt

[Mighty_crypt]

Good info, i have been looking for something like this to help on my trading journey, thank this will come in handy, i lose so much money trading because i can't understand when to trade, i heard bull season is the best time to trade

[sovie]

If you are a day trader you will be affected by these bulls and bears. Hodlers and long term investors are rarely affected by short bull/bear traps. Cant remember name of coin, it went upto 1500% in one day (news was shared here on bitcointalk.org), many have invested because of that artifical pumping. Please Dyor before investing anywhere.

[o48o]

It is not surprising that many are drawn to the allure of the risky state of cryptocurrencies as the cryptocurrency is seen as a complex and sophisticated technology that has made lots of people rich. Some of crypto traders are finding a new source of income through cryptocurrency trading, knowing the fact that many people have already earned thousands and millions of money from it.

Unfortunately, in crypto trading there are so called "the bear trap and bull trap". It's considered as one of the commonly occurring patterns that most traders dread. We all need a long patience in bull and bear traps we also need to be prepared for the bull and bear traps and to watch for price action near the top of an uptrend and bottom of a downtrend always keep this in mind.

It's really important to identify a bull and bear trap in cryptocurrency in order to understand the false patterns on it.


Understanding bear and bull trap can really change the way a trader make decisions. Read it now here:  https://kucoinblog.com/identify-bull-traps-bear-traps-sk-bt

They are called traps for a reason, it's really hard to avoid them if you are not a really low frequency trader, (basically an investor), even if you are not doing fomo but sticking with your ta with calculated risks, the manipulation is so intense that you can lose everything with those swings.

[krb91]

Many within the cryprocurrency space start trading without having a basic understanding of technical analysis and market manipulation, I know I was one of them, FOMOing into projects only to get dumped on then selling at a loss only for it to pump again. Individuals should learn to educate themselves and not fall victims to price manipulation and traps.

[pakhitheboss]

If it's called a trap, then you ned more than patience to get out of it. I have hardly heard any strategy revolving around both the trap as there isn't and the best part is that we know it is a trap still we fall into it. There is only one way to come out of it and that is to do the reverse. For which you need to be a powerful whale.

[leea-1334]

The problem is only a few people earned thousands and millions. Majority of people who were in profit in the bull run were retail speculators,,, kind of not far different from me of course (but I mainly held and did not speculate a big bankroll). These people mainly did not liquidate so they also "lost" everything the gained when the market crashed. I still think a long term mentality is good. This means the bull and bear traps do not really affect you.

[SabrinaBianka]

That is great idea, Expose the all details of how to avoid loses of money. I am still hoping that there has an info like that thank you op. Because I am always a victim of a Bull trap, I was always bought before to rise the price and I am lose because its goes to down and down but now I have an idea.

[maxreish]

I fell from these traps before-bull and bear trap. But when I tend to study how those traps can be spotted. I have noticed that hype or trends can always be a trap. Instead of following the trend, think twice. It maybe just a trick for traders to become liquidated at the end because of immediate sideways.

By the way, I've read the article. This seems to be helpful. The sudden market reversion shows and explains well and I like how those sample pictures shows the real scenario of bull/bear trap.

[akram143]

I don't think it is not possible for anyone to find out bull trap or bear trap,all we can do is make assumptions based on our technical analysis but even it will goes on the other side most of the time.If we can't really avoid bull trap and bear trap then we have to do nothing at these times to make profits.

[michellee]

I don't think that most people can identify the bull trap or the bear trap in cryptocurrency because we don't know what will happen to the price. We can only see if we are in the market and trying to buy or sell that coin, so after we purchased, the price will go down or up without any sign. The best thing that we can do is prepare for the worst and make another strategy so we can handle the bad situations that will happen. We can find a way out if we can think clearly about the current situations so that we will get that way as soon as possible. We can minimize the risk.

[livingfree]

Holders do need patience but we don't have to identify it as it's easy to recognize if the market is on bear trend or trap. The day traders also take advantage on this matter if they can see some alignment to the strat that they use while reading charts.

No need to be deep when it comes to analysis if you chose to be a holder, the famous strategy of buying at low and selling at high has been effective and perfect if you do it at the right time.

[iamaruf]

But in reality it’s really hard to understand what's going on,is it bull trap or bear trap? Actually no one know the future.. Even who wrote the article he can't say that which trap is going on.After finished the run he can tell that it was bull trap or bear trap. But this analysis is good to know what is trap in crypto,and how to survive from this.              

[Eternad]

I don't think it is not possible for anyone to find out bull trap or bear trap,all we can do is make assumptions based on our technical analysis but even it will goes on the other side most of the time.If we can't really avoid bull trap and bear trap then we have to do nothing at these times to make profits.

It's hard to identify as we all have different understanding and knowledge over technical analysis, some believes are not beliefs of other. It might be a trap for others but an opportunity to some. So we need to analyse only based on our portfolio or plan status since the market is volatile all we can do is make a deceaion that will be favor in us even others says it's a trap.

[InwardContour]

Good info, i have been looking for something like this to help on my trading journey, thank this will come in handy, i lose so much money trading because i can't understand when to trade, i heard bull season is the best time to trade

Yes bull season is the best time to trade, but if you are a good trader you don't wait for bull season. Just spend more time understanding technical analysis, also get ideas from pros in the trading game for more insight. Experience with constant learning and trying to improve on trading will go a long way to make you a successful trader even in the bear market. It's not quite difficult to spot a bear trap, and also try as much as possible to take profit when necessary. Sometimes I take as low as 5% profit depending on the market situation.

[tippytoes]

But in reality it’s really hard to understand what's going on,is it bull trap or bear trap? Actually no one know the future.. Even who wrote the article he can't say that which trap is going on.After finished the run he can tell that it was bull trap or bear trap. But this analysis is good to know what is trap in crypto,and how to survive from this.              

You have a gift of the future if you know how to tell such situation is going on. How can someone tell that it is the bear or bull trap going on? You can only tell that after such period of time because you can now compare the prices throughout the period and you can now distinguish which is the bull or the bear region for that particular coin. If you don't have money to spare on this volatile investment, you better weigh your options and decide for your own. It is your money at stake and no one else's. Whatever the outcome is, it is you who will feel the impact of your decision.

[deathcode]

I have until now been difficult to see that trap. but I only anticipate it when I start trading in the bear and bull market. the most important thing is to use the few possibilities that can happen there is a risk but we can minimize it.

[btcdie]

As I know after the pump there will definitely be a dump, it's very difficult to indicate manipulation done by the pope. especially doing daily trading is very vulnerable to being trapped by manipulation of traps (bulls and bears), moreover our emotions do not support. But we can analyze technically about this game and match it with fundamental (news facts).

[crazy-pilot]

This information from your topic is very similar to how I talked about various aspects of the cryptocurrency market to my friend. Identifying these traps is very important for any trader.

[OneCoinMan]

This is complete nonsense, it all depends on most other factors that cannot be described in one article, but it is necessary to study each separately. I think a good start will come out if you come up with something along with the trap pattern. You should not bet on just one factor, I somehow paid very dearly for this and I advise you friends that you would not step on my rake.
Best of all, try to find some kind of indicator that will increase the likelihood of a trap triggering.