When it comes to Bitcoin, a bull trap is a false indicator that the market is about to move upwards when in reality, it’s about to head south. This is usually seen as a result of price manipulation and can often be found during periods of high trading volume and price volatility.

A bull trap can often be found during periods of high trading volume and price volatility.

Bitcoin is no stranger to price manipulation. In fact, it’s been a Target of manipulation since its early days.

These days, however, the manipulation is more sophisticated and harder to spot.

One of the most common ways that Bitcoin is manipulated is through what’s known as a “pump and dump” scheme. This is when a group of traders work together to artificially inflate the price of an asset by buying it in large quantities and then selling it off once the price has risen.

This type of manipulation can often be hard to spot, but there are usually tell-tale signs, such as unusually high trading volumes or large price swings in a short period of time. If you see these signs, it’s best to stay away from the asset until the dust has settled.

Another common form of manipulation is known as “spoofing”. This is when a trader places orders for an asset with the intention of cancel them before they are executed.

This type of manipulation can also be hard to spot, but if you see large order cancellations on an exchange that doesn’t normally have them, it’s best to be cautious.

If you suspect that you may be caught in a Bitcoin bull trap, the best thing to do is to exit your position and wait for the dust to settle. Trying to trade your way out of a trap can often lead to even bigger losses.