Bear Trap
Definition
Bear Trap refers to a situation in which investors who sell in a bear market are trapped by an unexpected rise in asset prices.
Bear Trap refers to a situation in the crypto market or financial markets where investors sell with the expectation that prices will continue to fall. A bear trap occurs when prices begin to rise unexpectedly after experiencing a short-term decline. This causes investors to sell in the belief that prices will continue to fall, and when prices rise unexpectedly, these investors often rush to close their positions. In this case, prices rise rapidly and investors who fall into the bear trap may be forced to close their positions before the price increase can catch up. In this case, investors who fall into the bear trap usually make a loss, while those who benefit from an unexpected rise in prices make a profit. Bear traps often occur during times of uncertainty and volatility in the market, requiring investors to be careful.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
Browse the full JrKripto glossary for more definitions on trading, DeFi, blockchain, and market analysis. Each term includes a short definition and extended explanation to support your research.
The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
The glossary covers a wide range of topics from trading and DeFi terms to blockchain infrastructure and market indicators. You can find terms via search or the term list. Use the related terms section to discover related concepts.
