One common misconception is that bulls hate the color red. Bulls, just like any type of cows are colorblind. All they see is the color gray. According to the Bullfighting FAQ, there are two kinds of cape which is being used during a bullfighting event. One is the capote, a large, flowing magenta and yellow colored cape and the muleta which is the smaller red cape that we usually see. The muleta is exclusively used by the matador for the faena or finale part of the bullfight event.

The color red is a part of the Spanish culture and is always being used during festivities like bullfighting events. They also chose this color because it is easily recognizable. The audience can easily distinguish the bullfighter when hes moving inside the ring.

Now that we know that the bulls violent behavior is not influenced by color, the remaining question is why do they attack?,

They attack because they are angered. They are easily enraged because the bulls which are being used for bullfighting ...more

It's not due to the red colour of the cloth but the movement of the cloth. Any coloured cloth or a colourless one would have made the effect. Your observation in the first sentence is correct.

Yes