The 'value trap' in a downtrend: Short-term prices are driven by capital and sentiment, while long-term value is determined by fundamentals. When the main capital driving price increases starts to exit (distribution at high levels), attempting to 'buy the dip' based on long-term valuation during a capital pullback can easily lead to a 'value trap'—where the asset has value but its price may continue to decline due to capital-related factors.