Key takeaways
Bear raids involve deliberate efforts by whales to drive down crypto prices using short-selling, FUD and large-scale sell-offs to trigger panic and profit from the dip.
These raids create volatility, trigger liquidations and damage retail confidence. However, they can also expose weak or fraudulent projects.
Signs include sudden price drops, high trading volume, absence of news and quick recoveries, indicating price manipulation rather than natural market trends.
Traders can guard against bear raids by using stop-loss orders, diversifying portfolios, monitoring whale activity and trading on reputable, regulated platforms.
Not all market moves are organic in the dynamic world of crypto trading; some are engineered to make quick profits. One such tactic is the bear raid, often driven by powerful market players known as whales.
These traders strategically use short-selling, where they borrow and sell assets at current prices, aiming to repurchase them cheaper once the price drops.
So, how exactly