đ¨ INSIGHT: What is a Bull Trap?
A bull trap tricks traders into believing the market is rising when itâs actually about to decline. Theyâre common in crypto, making it crucial to stay informed.
For example, if someone on X falsely claims bullish news, traders may rush to invest, driving the price up.
When the news is exposed as fake, panic selling can cause a crash, leaving late investors with losses.
A bull trap is a common pitfall that preys on emotions like fear and greed.$BTC