Bull Trap

A bull trap is a market phenomenon where an asset’s price shows signs of a potential rebound after a decline but ultimately continues to fall. It can be a deceptive signal that lures investors into thinking the price will recover, only to experience further losses. In some cases, investors with substantial capital intentionally manipulate the market by taking short positions and selling a significant amount of the asset, artificially causing its price to decrease. This practice is regarded as market manipulation and can lead to substantial profits for those involved.