In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

Bybit Learn Livestream Newcomers vs. USDT: Who will win? featured image

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Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

Bybit Megadrop.png

Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

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Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

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How to send and receive payment using Bybit Pay

Strategies

Trading

A bull trap refers to a false signal against a bullish trend causing traders to sell off their assets. But did you know you can avoid it? Read on to find out how.

Every sport has its trick play. A play where they fake movement in one direction to throw the defense off, only to move in the opposite direction.

 has its playbook of trickery, today we will share a page out of the book called the bull trap. This pattern traps traders into buying while the market is still trending lower. And if you’re caught in this trap, the consequences can be quite severe.

Whether you’re retail or experienced traders, in this guide you will uncover the ins and outs of a bull trap. You’ll learn to hedge funds by avoiding these traps, based on an asset’s past performance, and by identifying them on a price chart.

A bull trap is when a steadily declining asset appears to reverse in a convincing rally but soon resumes its downward trend to even lower pricing.

Traders witness a downtrend and anticipate a bullish reversal, looking to buy the dip at a good price. After an investor buys in at the initial stage, the price breaks out and rallies beyond the key 

, but later retreats and resumes the downtrend. This pattern is completed when the price breaks down and creates lower lows, pushing the trader into a losing position. Hence, these breakouts can be considered a false signal, one of the worst-case scenarios a trader can anticipate.

Bull trap patterns are often referred to as a “

.” They are commonly seen in all markets, especially in crypto markets, due to frequent swift recoveries. Therefore, crypto traders may anticipate a bounce and buy tokens too early, leading to large losses and frustration.

There are essentially three parts that make up the perfect bull trap. We’ve illustrated them in the image below.

A bull trap occurs when a false rebound traps bullish traders into long positions. In the illustration above, the market is correcting lower within an initial downtrend at 

Then, traders anticipate the end of the correction and buy with the hopes of catching a good entry in the cryptocurrency at 

. Perhaps their trade starts with an unrealized profit, but the attempted rally loses momentum and cannot be sustained.

Prices end up reversing lower as sellers overtake buyers, pushing the market down. When the market falls below the old low, the pattern is completed as the trader either stop the trade or is very deep in a floating loss (see 

The essence of this pattern is when traders prematurely 

 in anticipation of a market low. It appears to the traders that the market downtrend is over. After they are in a long position, prudent and wise crypto traders will place their risk and a 

The early entry into trade and false breakout higher cannot be sustained because the market lacks large buyers. As a result, sellers continue to overwhelm the scarce buyers, and the pricing is readjusted to lower levels.

However, the problem escalates for the buyer, whose trade begins to float at a small loss. The problem intensifies for the buyer as the market pricing keeps readjusting to lower levels.

As the market trends lower, it begins to trigger the stop losses placed by the long traders. When a long trade is stopped out, the trader has to sell.

As the stop loss is triggered, more sellers are added to the market. More sellers in the market generate lower pricing. This negative feedback loop generates strong downward momentum on prices, and the market moves very swiftly to the downside.

Crypto markets are notorious for sharp bullish reversals, and crypto traders don’t want to miss out on a bargain entry. As a result, traders enter at a low price, but it may not end up being the bargain price.

Given this challenge, we can identify signals through technical analysis and 

, which will alert us to the potential development of a bull trap.

First of all, after a steady decline prices will rally, but not very far. In the example above, Bitcoin falls 23% during its initial decline in May 2021. During the initial downtrend, prices will remain below the sloping resistance trend line.

This behavior suggests the mood of the market is still to the downside, and the door is open to a bull trap.

Secondly, a bull trap will experience a false rebound that is weak with no momentum. As a result, the market will have a difficult time breaking above technical resistance levels. These zones are horizontal resistance levels, at previous highs and lows, which the market cannot break.

Another symptom that the market is creating a bull trap is lack of range expansion. A “range” in trading has multiple descriptions. One of the meanings for “range” refers to the size of each candle. If the chart is a daily candlestick, then each candle represents that day’s range.

During the initial downtrend, range expansion will take place, indicating that momentum is strong. To reverse that trend, you need to see range expansion in which the trend moves higher and bounces. The lack of range expansion on the bullish bounce is a symptom of a weak bounce — and that prices are at risk for further correction.

Measuring range expansion is fairly simple. Try adding an indicator to the chart called “

.” Set the input parameter to “1”. This indicator will place a window with a line at the bottom of the chart that provides a range measurement for the previous candle.

If the rally after the initial decline occurs with the indicator staying the same or becoming smaller, then it suggests that no range expansion is taking place.

Additionally, the market will experience a lack of momentum evidenced by the Relative Strength Index (RSI) indicator. Many traders or investors 

 for overbought, oversold readings and to confirm a reversal breakout.

For example, if the RSI has a hard time moving above the 50 centerline reading, this is indicative that a market shows indecision and is not yet recovering. Without momentum in the market, RSI readings will remain below 50.

Finally, the ultimate symptom of a bull trap is when prices break below the old/previous low. Traditional technical analysis will review price action in the form of old highs and lows.

A breakdown below the previous swing low continues a series of lower highs and lower lows, which is the definition of a downtrend.

As the bull trap is sustained, prices tend to correct swiftly to the downside. In the Bitcoin example above, the bull trap pattern shows that prices collapsed 42% within five days.

Crypto markets frequently trap most traders into buying too early. Let’s look at a couple of examples where the bull trap led to quick and large collapses in Bitcoin and Ethereum prices.

After topping on February 13, 2020, Bitcoin’s price began to correct lower and shaved 20% off its value (point 1 on the image above). Traders then saw a bounce develop as Bitcoin recovered some of those losses (point 2).

However, the technical indicators on the chart illustrate how this rebound is potentially a false recovery. Price is well below trend line resistance (point 3) and struggles to break above a horizontal resistance level (point 4). In addition, the recovery is not experiencing a range expansion (point 5). Lastly, the RSI indicator is unable to press above the median line at 50.

At this point, there is no evidence to suggest a meaningful low is in place for Bitcoin. As a result, Bitcoin is at risk of a bull trap.

Sure enough, Bitcoin reversed and fell through the old low two days later. This break below the old low led to a 58% collapse in the pricing over the next five days.

Bitcoin isn’t the only cryptocurrency susceptible to a bull trap. The bull trap was present on a 4-hour price chart of Ethereum the same way, right before it collapsed on May 19, 2021.

Ethereum entered a steady decline of 29% from May 12 to May 16 (point 7). 

 began a seemingly convincing rally (point 8), but the technicals of the chart suggest otherwise.

First, Ethereum did not break the downtrend, as the price was below the trend line (point 9). Secondly, ETHUSD couldn’t even break a horizontal resistance line (point 10).

Also, the market was exhibiting range contraction (point 11), which is the opposite of a healthy rally. Lastly, RSI could not break above 50 (point 12), suggesting this rally could be a false recovery.

Ethereum eventually proved this was a bull trap pattern, as prices fell to retest the old low at $3,124. After that test failed, prices collapsed 40% in a short period — in this case, just a matter of hours.

In a bull trap, the trend is still declining, but the crypto trader is still buying. The risks for these traders lie in trading against the trend.

But the truth is that a trend can last much longer than anticipated. The best way to trade trends is to filter your trades in the direction of the larger trend. For example, in the bull trap pattern, the trend is still lower; you need to filter the signals. That way, you are taking on short-selling trades.

Therefore, identifying the resistance levels where you can initiate a short sell position is crucial. If the market bounces higher and witnesses the bull trap symptoms previously described, then you have strong potential for a continued trend lower.

Also, identify the old swing low on the chart, and place a sell stop order should a breakout occur. Use the cascading sell orders to your advantage and align your trades to the direction of the larger trend, which is lower.

Lastly, make sure to incorporate sound risk management techniques, like implementing a stop-loss order. If the trade doesn’t work out, a stop loss order will prevent a small loss from turning into a severe one.

All in all, the best way to trade a bull trap pattern is to follow the prevailing trend lower and look for short-selling opportunities, rather than buying opportunities.

There will be times when you suspect a bounce in prices but are unsure if a true rebound will take place — or whether it may be a developing bull trap pattern. We never really know ahead of time, until there’s enough evidence that the rising prices appear to have some momentum behind them.

One of the best ways to avoid the bull or bear trap is to check the volume. Should there be any changes to the asset’s value but the volume remains unchanged, it could signal a trap is coming.

Wait for an Indicator to Confirm a Signal

Another way to avoid a bull trap is to wait for the indicators to provide enough evidence that the pattern is unlikely to develop.

Are prices breaking resistance trend lines and overhead levels of horizontal resistance? If these resistance levels break, then it is safer to go long.

Are you witnessing range expansion in the average true range (ATR) indicator? Not every candle will be larger, but you want to see the bullish candles larger than the bearish candles before going long.

Also, is your RSI oscillator breaking above 50? If so, this is evidence that the trend is gaining some momentum.

In April 2021, Ethereum exhibited technical signals that suggested a low likelihood of a bear trap. As illustrated above, Ethereum avoided the bull trap and ended up with a breakout, rallying 83% in value.

It can be challenging to wait patiently for some of these indicators to flash positive signals. However, if these symptoms are not present, the crypto market remains at risk of falling further — which means taking on losses in your trading account.

A bull trap pattern frequently occurs in crypto markets, as it is a false breakout signal to bulls that a rally is underway. In reality, the trend is expected to go lower, and the market continues to seek out cheaper pricing. 

The best way to avoid these traps is to wait for the technical indicators to signal a bull trend is underway, which means waiting patiently. Do not expect the market to react the way you anticipate without the confirmation of proper indicators. Always do your due diligence — and know that you trade at your own risk.

What Is a Cryptocurrency Bull Trap & How to Avoid it?

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