What Is Bear Trap?

A bear trap is a false signal indicating an uptrend has reversed downward, causing traders to sell or short before the price continues higher. Bear traps shake out weak holders and allow whales to accumulate at lower prices. On-chain evidence of a bear trap includes whale buying during apparent breakdowns and increasing accumulation despite negative price action. Sonar Tracker helps identify bear traps by showing when whale behavior contradicts what price charts suggest — whales buying heavily while prices appear to be falling is a classic bear trap indicator.