Bear Trap

A Bear Trap is a trick played by a group of traders aimed at manipulating the price of a cryptocurrency. Bear traps often break local price supports before quickly reversing to the upside, and encourage traders to open short positions (see: margin trading) after a key support has been broken. As a result, other traders sell their assets, further driving the price down. Those who set the trap then release it, buying back their assets, which are now at a lower price. The overall price then rebounds, allowing them to make a profit.