Bull Trap

False rally signal in a downtrend - buyers left holding the bag.

Bull trap: in a downtrend a strong bounce (15-30%) looks like a bull start - key resistance broken, green candles, media optimism. Buyers pile in, then trend resumes lower with more force. Classic traps: BTC Aug 2022 (bounced 19k->25k before bottom 15.5k), May 2018. Defense: buy after 2nd support test, not the first pump from a low.

In plain words

Crypto's been falling for months. Suddenly a BIG PUMP +30% - everyone thinks bull's back and buys. Two days later it drops again, even lower.

Example

BTC Aug 2022: bounce 19k->25k (+32%), everyone called the bottom; September drop to 18.5k, November 15.5k.

Also known as: dead cat bounce

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