Bull Trap in Cryptocurrency

[Golden9]

A bull trap occurs when prices go unexpectedly higher after breaching resistance levels. This leads to liquidation of both shorts and longs, as price usually reverses back soon to lower levels.

The best way to avoid this is to stick to well established levels, and also to have stop losses placed outside the zone at the higher level or resistance or support.

 

[iyanpol12]

Do you think the surge of prices yesterday is a bull trap? It seems it is but I'm not so sure.

 

[Johnson2468]

To avoid falling into a bull trap, investors should do their research and due diligence before investing in any cryptocurrency

 

[Suba]

The Bull Trap is often referred to as a false signal in the downward trend of crypto, so many traders are trapped, to avoid it besides you have to place a stop loss, check the RSI and volume.

 

[flower]

It is normal for the prices of cryptocurrency to come down if it does go up so high because people would want to liquidate to make profit

 

[Reedex]

The prices of cryptocurrency is always fluctuating and it does not stay in one place. it takes a prior experience to be able to make profit from the movement.

 

[Bisolami]

A bull trap occurs when prices go unexpectedly higher after breaching resistance levels. This leads to liquidation of both shorts and longs, as price usually reverses back soon to lower levels.

The best way to avoid this is to stick to well established levels, and also to have stop losses placed outside the zone at the higher level or resistance or support.

The price is going and now people are still scared that it will come back lower which is very possible and very certain

 

[oldbuddy]

The price is going and now people are still scared that it will come back lower which is very possible and very certain

The solution is to not even look at the price, I only watch the quantity of free Satoshi earning daily compound interest in my account. As long as the price keeps jockying around with some people winning and some losing, I will still be making money every day.

 

[Bisolami]

The solution is to not even look at the price, I only watch the quantity of free Satoshi earning daily compound interest in my account. As long as the price keeps jockying around with some people winning and some losing, I will still be making money every day.

You are right but I think some people do not have the patience to do that so they rather prefer to work on other platforms

 

[Reedex]

So many people will fall into the bull trap and they will lose huge amount of money in the course.

 

[riberet19]

A bull trap is an upward market movement with an excessive volume for no apparent reason with 2 possible objectives one is to create fomo and that retail investors raise the price and then get caught when the causes of said bull trap sell the assets, and another can be to eliminate short bets in the market.

 

[gammarays]

A bull trap is usually a quick spike in price that is not sustained. It's not usually good for traders because it liquidates trades. It's good to be out of trade in this cases to be safe.

 

[uptrendfinancialsignal]

Following cryptocurrency analysis, when prices goes up it will come down because people will want to liquidate their assets to make profit.