A bull trap occurs when the price of a cryptocurrency appears to be rising, leading investors to believe that a bullish trend is developing. Traders may start buying in anticipation of continued price increases, hoping to capitalize on the upward momentum.However, this rally is often short-lived. After reaching a peak, the price can suddenly drop, catching investors off guard. Those who bought in believing the upward trend would continue find themselves facing losses as the market reverses direction.Bull traps can result from various factors, including market manipulation, over-optimism, or external news that lifts prices temporarily. Recognizing a potential bull trap is crucial for traders, as it helps them avoid poor investment decisions and minimize losses. In essence, a bull trap is a deceptive signal that misleads traders into thinking the market is strong when it may just be setting them up for a fall. Understanding market trends and exercising caution can help investors navigate these misleading scenarios.