BUIDL Launchpad is now live! 🎉

Bull Trap

The best way to define a bull trap is just the reversal against a bullish trend. A bull trap generally occurs when traders and investors buy securities based on resistance breaking. The bull trap is intended for traders and investors to catch off guard, as a result, they exit positions without any choice.

Bull traps give off false market signals, often exhibiting a prominent downward trend. This is why bull traps are often referred to as the 'whipsaw pattern.' Once the trap is properly laid, it entices traders and even long-term traders to make positions for more purchases.

Bull traps are often notorious for giving off sharp reversals after finishing a breakout. In the crypto space, since breakouts are always followed by stronger price action, traders are often intimidated by it.


Looking for more content to learn about Web3?
Subscribe to our newsletter for weekly updates 👇

Connect with us