What Is Bull Trap?

A bull trap is a false market signal that suggests a declining price trend has reversed upward, luring buyers in before the price resumes its downward trajectory. Bull traps often occur after a brief price rally during a broader downtrend, trapping optimistic buyers at higher prices. Whale tracking can help identify bull traps: if a price rally is not supported by genuine whale accumulation or is accompanied by whale distribution, it may be a bull trap. Sonar Tracker sentiment analysis combines price action with whale flow data to assess signal reliability.