Have you encountered a bull trap or a bear trap in the market? They are two of the most dangerous manipulation techniques that can destroy your portfolio. Let’s take a closer look at them so they don’t catch you off guard next time.

A bull trap is quite a simple trick. Large players buy first, spread positive news, and the price soars. You see it, everyone sees it, and then everyone rushes to buy. But the moment the market is full of newcomers who bought at the top, whales quietly sell, and the price drops. Someone buys at 100 and sees it fall to 60. Ouch.

A bear trap is the opposite. The price drops, everyone panics and sells, thinking it will go even lower. But once everyone has exited their positions, big players start buying again, and the price skyrockets. This way, people get rid of assets cheaply and just watch their profits slip away.

What can help you protect yourself? First, watch the volume. If the price is rising but the volume is weak, it could be a trap. Don’t blindly buy at the top of a trend. Verify the news, don’t chase unconfirmed rumors. And most importantly, set a stop-loss to prevent losing all your money.

In a bear trap, it’s important to monitor the broader market. If only one coin is falling while others are stable, that’s suspicious. Wait for confirmation that the bottom is truly the bottom. Control your emotions because manipulators are counting on them.

Overall, it’s about staying calm and rational. Technical analysis, MACD, RSI—all these tools can help you spot false breakouts. Keep an eye on fundamentals, project updates, the ecosystem. Don’t get carried away by price alone. Diversify, manage risks, and you’ll be better at avoiding these traps. The market is full of those who lost everything by falling for them. You won’t.