Bull Trap

A bull run in the cryptocurrency market refers to a period in which the prices of cryptocurrencies rise consistently. Various factors, including increased demand for a particular cryptocurrency, positive developments within the industry, or a general increase in investor sentiment, can cause this. On the other hand, a crypto bull trap refers to a situation in which investors believe that a bull run is happening and begin buying a particular cryptocurrency. Still, the price does not continue to rise and…

A crypto bull trap is a situation in which the price of a cryptocurrency appears to be rising, attracting investors to buy it, but it is part of a downward trend, and the price will soon drop. This can occur when the price of a cryptocurrency is artificially inflated by market manipulators or by a lack of understanding on the part of investors. For example, let's say that the price of a certain cryptocurrency has been steadily declining over the…