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A **bullish divergence** is a technical analysis term used to identify potential reversals in a downtrend. It occurs when the price of an asset is making lower lows, but an indicator (such as the Relative Strength Index, RSI, or MACD) is making higher lows. This suggests that while the price is declining, the selling pressure is weakening, and there may be a shift towards upward momentum.

There are two types of bullish divergences:
Regular Bullish Divergence**: It signals a potential trend reversal from a downtrend to an uptrend. It occurs when:
- Price makes lower lows.
- Indicator (like RSI or MACD) makes higher lows.
Hidden Bullish Divergence**: This signals a continuation of the uptrend during a pullback. It occurs when:
- Price makes higher lows.
- Indicator makes lower lows.

Both divergences suggest that a potential upward movement could occur, but they are not guaranteed and should be used alongside other tools for confirmation.