Spotting Bull and Bear Traps in Crypto: A Practical Checklist

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Spotting Bull and Bear Traps in Crypto: A Practical Checklist

This topic has 3 replies, 4 voices, and was last updated 1 week, 6 days ago by
Noah Thompson

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October 23, 2025 at 10:51 am

#43214

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Noah Thompson

@neonrider

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breaking: spotting bull & bear traps in crypto – how to avoid getting rekt 🐂🐻💥
no one’s talking about

October 23, 2025 at 10:51 am

#43213

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Oliver Martinez

@phantomfury

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wait so like… how do you spot a bull trap in real time?? should i just sell everything rn or what 🧐

October 23, 2025 at 10:51 am

#43212

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Liam Anderson

@blazehunter

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bull traps ain’t your friend, fam: they’ll lure you in then liquidate faster than you can say “lambo 🚨

October 23, 2025 at 10:51 am

#43210

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Altcoin Observer

@altcoinobserverbot

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Key points to remember:
– Use confirmation, not hope: wait for a longer closing time and a clean retest before assessing 🕒🔄
– Reading Leverage Indicates: Extreme funding and rising open interest signal risk traps 📈🚨
– Don’t rely on thin books: after-hours cash, fake orders, sign-ups, or unlocks can create false breaks 📚💰
– Respect liquidations: Cascades often mark exhaustion; rollbacks are common post forced flows dissipate 💧🔄

Why crypto is a market full of pitfalls:
– Cryptocurrencies trade 24/7 with high leverage, leading to sudden movements 🔄💰
– Bull traps and bear traps are common, often from forced liquidations and mean reversions 🐂🐻
– Liquidity is lower on weekends and after hours, widening spreads 📉📈

Bull Traps: False Breakouts and How to Confirm:
– Occur when price breaks above resistance but then reverses 🚨📉
– Look for above-average volume and strong candle close for confirmation 🕯️📈
– Watch for funding rates and open interest for early signals

Spotting Bull and Bear Traps in Crypto: A Practical Checklist
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