If you have been trading in the crypto market, you must have noticed that price often goes up and down - sometimes drastically. Well these might be bear or bull traps. 

What is a bull trap? Very simple, it is a false indication that the price of a token is expected to rise. This encourages investors to buy the crypto at a higher value. Then very soon the price drops drastically which forces the trader to either sell the tokens at a loss or hold the token at a long position. You might have heard of a bull trap under the famous name - pump and dump. In my opinion - i.e. I would assume that a sudden rise in price for example from $50 to $70 within one day might be an indication of a bull trap. But this is not always true, it is just the way I see things.

So now what is a bear trap? It's exactly the opposite of the bull trap - that is a false indication of token prices falling forcing traders to panic sell the tokens. This is something that I have seen happening recently with famous tokens such as Bitcoin, Ethereum, BNB, etc. I did take some risks by selling BNB when it was at $430 and then buy it back at $360. Based on what I noticed, there are constantly being manipulation of the prices like they go up and down. For instance for now, I believe by Sunday, the price of BNB will be above $400 and then below $400 by next Wednesday. Well this is just my opinion and it is not financial advice.