How Not to Fall into a Bull Trap in Crypto

Bull traps are the worst enemy of the trader. You see a strong bounce back on the chart, everyone celebrates, you increase your position… and boom, everything collapses. You end up trapped with losses.

How to identify them?

1. Wait for real confirmation Don't get excited about a green candle. Look for multiple signals: break of resistance + high volume + positive indicators. If you only see one, it's likely to be fake.

2. Volume is your best friend Bounce back with low volume = weak movement = trap. Bounce back with high volume = it can be legitimate. Always check the numbers.

3. Always use stop loss If the trade goes against you, a stop loss order will automatically close the position. You won't lose your entire stack waiting for it to bounce back.

4. Look at the overall context If the entire market is in a downtrend, an altcoin is unlikely to rise sustainably. Respect the macro trend.

The opposite: bear trap is the inverse—a false bearish breakout that tricks you into shorting, and then it bounces back strong.

Moral: discipline and patience. Those who wait for confirmation win. Those who enter FOMO lose. Choose wisely.