Bear Trap

A false technical signal that makes it appear an asset's price is breaking down below a support level, luring traders into opening short positions, only for the price to quickly reverse and move sharply upward. Traders who sold or shorted during the apparent breakdown get 'trapped' as the price recovers, often being forced to buy back at higher prices (short squeeze), which further accelerates the upward move. Bear traps are common during periods of accumulation by larger players.