BULL 🐂 Run 🔁 BULL 🐂 Trap
The key difference between a Bull Run and a Bull Trap lies in market trend strength and sustainability:
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✅ Bull Run
A bull run is a sustained and strong upward trend in the market, driven by genuine investor confidence, positive fundamentals, and increasing demand.
📈 Trend: Long-term upward
💰 Buying Pressure: Strong and consistent
🔍 Backed by: Positive news, earnings, adoption, market growth
🕒 Duration: Can last weeks, months, or years
📊 Example: Bitcoin from Oct 2020 to April 2021
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⚠️ Bull Trap
A bull trap is a short-term false signal of a trend reversal where prices temporarily rise, tricking traders into buying before the market resumes a downward trend.
📉 Trend: Temporary upward in a larger downtrend
🧠 Driven by: Panic buying, short covering, fake news
💣 Result: Prices drop again, trapping late buyers in losses
🕒 Duration: Short-lived (hours to days)
📊 Example: A sudden bounce during a bear market that quickly collapses
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🧠 In Simple Terms:
Bull Run = Real, long-lasting growth
Bull Trap = Fake bounce before a fall