Recognizing a bear trap can save traders from significant losses. 
Here are key signals to watch for:
BTCUSDT
ุฏุงุฆู
84,119.9
-0.29%
False Breakdown ๐: The price briefly dips below a support level before quickly bouncing back.
Volume Spike at Reversal ๐: A sudden increase in trading volume when the price moves back up signals strong buying pressure.
Short Squeeze ๐: As the price rises, short sellers panic and start buying Bitcoin to cover their positions, accelerating the upward movement.
Market Sentiment Shift โก: Initial bearish sentiment changes as traders realize the reversal was a trap.
Understanding these signals helps traders avoid being caught in bear traps and capitalize on the marketโs movements strategically!