Bear Trap

A bear trap is a deceptive market manipulation technique employed by wealthy investors who collaborate to manipulate the price of an asset. This scheme involves strategically coordinating the simultaneous sale of a substantial amount of the asset, such as a cryptocurrency, leading to a significant drop in its price. The objective is to persuade other market participants to follow suit and sell the asset, causing further decline in its value. Subsequently, the initial sellers re-enter the market at a lower price, triggering an upward surge in the asset’s price, potentially allowing them to sell the asset once again for increased profits.