Recently, the Crypto Assets market has experienced another intense fluctuation. The price of Bitcoin once fell to 111,919, triggering panic selling among many traders. However, John Bollinger, the founder of Bollinger Bands, proposed a thought-provoking point: this could be a typical "bear trap".

The so-called "bear trap" refers to a sudden drop in market prices, leading to short positions entering or long positions being stopped out, followed by a rapid rebound in the market that forces short positions to cover, ultimately resulting in a reversal. In fact, after this wave of decline, the price of Bitcoin has indeed seen a strong rebound and is currently around 115,229, seemingly confirming Bollinger's viewpoint.

From a technical analysis perspective, the Bollinger Bands have recently shown an extreme contraction, which usually signals that market volatility is about to explode. The current key question is: is this drop below the lower band a false breakout? Or is it just building momentum for the next rebound? It is worth noting that the current price has returned to near the middle band, and if it can stabilize above 116,000, it may open up space for an upward movement.

For investors, if it is confirmed that this is a "bear trap" situation, one can consider positioning long positions at lower prices while closely monitoring the accompanying trading volume. However, if there is a reoccurrence of a significant volume breaking below the midline, one needs to be cautious of the risk of deep adjustments and take timely profit-taking measures.

In the current complex and changing market environment, investors need to maintain a clear mind, paying attention to both short-term market fluctuations and long-term development trends. Whether choosing to short or believing this is a "bear trap", it is necessary to formulate trading strategies based on sufficient market analysis and personal risk tolerance.

As the crypto assets market continues to develop, changes in regulatory policies, the attitudes of institutional investors, and the global economic situation may all impact Bitcoin prices. Investors should closely monitor these factors and remain cautious and rational when making investment decisions.