Join 69,062 users and earn money for participation

Be Aware Of Bull Trap!

4 231 exc boost
Avatar for Cineholic
Written by   109
1 month ago

I am Crypto Newbie and learning. With the recent crash in crypto market I learnt many things. First of all I learnt that BTC is not decentralized anymore. Some big whales or I must say Godzilla can manipulate market easily to get their goals done. The small investors and traders like us now have to fight bear market as well as these big whales. After the recent dump, it seems that market is trying to stabilize itself but it's may be a bull trap. Who knows.

This is the second class of Crypto for Newbies like me. In previous article we learnt difference between a coin and a token. In that article we discussed about ICO, Liquidity, Coin Burn and Fork e.t.c. Read Complete article here:

Some Basic Terms Of Crypto For Newbies. Explained!

In this article we are going to learn about Bear Trap and Bull Trap and ways to catch them.

Bear Trap

Before understanding Bear Trap let us know about bear men or men having bear sentiments. A person who is expecting that market will go down from here or A person who is pessimistic about market is called bear man or a man having bear sentiments.

In a Bear Trap some big whales or I would say manipulators start selling a specific coin on same time and same price and create a big dump to that coin. Seeing this, small investors and traders like us start selling too even in lose just because they think coin will never gonna recover soon. When outsiders start selling it, the whales stop selling it and let the price decreasing. The purpose behind dumping that coin is to just buy that coin again on a low price.

Have you ever been in a situation where you bought a coin and its price started decreasing and you sell it to just to avoid a greater lose. And after selling it you notice a sudden price increase in that coin? Yes? you are a victim of bear trap then. I have been in that situation many times in the beginning.

Solution: The best solution to handle a bear trap is to check order book immediately after noticing a price decrease.

If there are many sell orders in huge amount or quantity then this means price gona decrease more. So you should exit that time to avoid more lose. Or if there are normal orders in sell section then you should wait and check the news and analyse it technically.

Bull Trap

Bull Trap is opposite of Bear Trap. In Bull Trap some big manipulators start buying a specific coin. By seeing this, small investors and traders who are newbies like me jumps in gain some profit. When outsiders start buying that coin, whales stop buying it let the price increase. Then after gaining the set profit whales suddenly dump that coin by selling it at the same time.

Most of the time Bull Trap happens in the coin which use for leverage and future trading. Manipulators use bull Trap as weapon to gain profit in leverage and future trading.

Solution: The solution to avoid a bull trap is as simple as A.B.C. Just don't jump in running Train. Never ever buy a coin which is already pumped 10% or more. Wait for its price decrease or for a better entry point. Always use stop loss if you are not a long term hodler.

FUD

FUD is abbreviation of Fear.. Uncertainty.. Doubt. This is another technique use by the big whales to manipulate the market. For example: there is huge FUD created by whales these days. Illogical news, tweets and articles are the main source to create fud these days.

A news coming from China that government of china banned Crypto is best example of fud. China never allowed Crypto in its country. Then banning it is useless as you never allowed it. And the same news is coming every year.

Suggestions (Not A Financial Advice)

Always select coins which has strong fundamentals to trade. Use stop loss. Invest in strong fundamentals coin if you are a long term hodler.

Buy Bitcoin Cash (BCH), Ethereum (Eth), Bitcoin (BTC), Cardano (ADA) and Binance Coin (BNB) if you want to be a millionaire.

Specially if you want to be a millionaire more quickly then just buy BCH and ADA. Remember my these suggestions and see results in just 2 to 3 years.

Note: It is just my analysis, Not A Financial Advice. Always DYOR.

Thanks for reading the article. And if you like this article then

Thanks.

10
$ 20.03
$ 19.80 from @TheRandomRewarder
$ 0.10 from @Pantera
$ 0.05 from @eommaZel
+ 2
Sponsors of Cineholic
empty
empty
empty
empty
Avatar for Cineholic
Written by   109
1 month ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

Hi. Thanks for writing this. Some thoughts:

First of all I learnt that BTC is not decentralized anymore. Some big whales or I must say Godzilla can manipulate market easily to get their goals done.

This is not a new phenomenon. If anything the number of whales has increased and thus the kind of centralization you speak of has decreased over time.

In a Bear Trap some big whales or I would say manipulators start selling a specific coin on same time and same price and create a big dump to that coin.

No, that's not what a beat trap is. A bear trap happens in a declining market when price rises. People (bears) think falsely it's a reversal and go long or close their shorts. Market then continues to fall and they notice they're trapped. See https://www.investopedia.com/terms/b/beartrap.asp

Chico cryptos explains bull and bear trap well in this video: https://lbry.tv/@ChicoCrypto:f/warning!-another-crash-soon!!-why-it’s:9

$ 0.00
1 month ago

Thank you so much for correction 💗🙂

$ 0.00
1 month ago

Thank you so much for the sponsorship.

$ 0.00
1 month ago

My pleasure ☺️

$ 0.00
1 month ago