Bear Trap
False drop signal in an uptrend - sellers miss the move.
Bear trap: in an uptrend a sharp drop (10-20%) looks like a bear start - support broken, red candles, FUD. Sellers short, buyers panic-sell. Days later price snaps back above and continues bull. Sellers led astray. Classics: BTC Aug 2024 (49k -> 100k after), Sept 2023.
In plain words
Crypto's been rising for months. Suddenly a sharp -15% - everyone panics bear's back and sells. Days later price recovers and continues rising.
Example
BTC August 2024: crash 65k->49k (-25%) in 2 days after Japan. September back to 65k, November 100k.