A **bull trap** occurs when the price of a financial asset (such as a stock or cryptocurrency) appears to be moving upward, luring in traders who believe a new upward trend is beginning. However, after a short-lived rally, the price quickly reverses direction, resulting in losses for those who bought in during the initial upward movement.

In other words, it's a false signal that tricks traders into thinking that the market is going bullish (moving up), when in reality, it was just a temporary increase before a decline resumes.

Bull traps can be particularly dangerous during bear markets or periods of high volatility.