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Bull And Bear Market Explained[Market Characteristics]

“Bull” and “Bear”. These two terms described the condition of the market. In today’s post, I’m going to share with you about bull and bear market, related facts that have to be considered and how these two terms affect your portfolio.

Basically, It’s an important factor once you’re in cryptocurrency or any trading platforms.

But, this article is based on cryptocurrency only.

Okay, What is the bull and bear market. Let’s talk about them by individual with examples.

Bull Market

The meaning of the bull market is for some reason when the prices of coins in the market rising instantly for a period of time.

In general, when the whole cryptocurrency market in the rise, called a bull market.

By the way, We have to take care of some things about this bull market.

Characteristics of the bull market

High volume: During the bull market, The volume of the whole market is extremely high. Because of the demand which caused the bull market

Chance of breaking the resistance line: Resistance line means a part of technical analysis and usually coins stick with the resistance line and support lines. But when in the bull market, Literally have a higher chance of breaking the resistance line.

Massive difference in buy/sell walls: Buy/sell walls are the graphs that show how market buys and sales happening. When the bull market, It has massive gain in buy-side

bull-and-bear-market

This is the bitcoin chart when the 2017 – 2018 bull market happened.

Check out the highlighted area. You can see there is the resistance break and price went all the way up to the 17000$.

This is how the bull market happens.

The bull market can be caused by an economic activity

Because the businesses whose stocks are trading on the exchanges are participants in the greater economy, the stock market and the economy are strongly linked. A bear market is associated with a weak economy as most businesses are unable to record huge profits because consumers are not spending nearly enough. This decline in profits, of course, directly affects the way the market values stocks. In a bull market, the reverse occurs, as people have more money to spend and are willing to spend it, which, in turn, drives and strengthens the economy.

Investopedia

What should you do in the bull market?

The perfect chance of taking profits. If you would take advantage of the bull market and invest in specified coins, That would be an amazing opportunity for you. Take time and research. Have a look

Bear Market

The whole market prices keep falling for some reason is called the bear market.

Why is this happen?

After the bull market, This could happen step-by-step according to support and resistance.

But when in the bear market, there is a higher chance of breaking the support line like the adverse on the bull market.

The basic characteristics of the bear market are negative forms of the bull market. Which means,

Low volume, Massive sellings on the sell wall.

What should you do in the bull market?

If you could turn your funds to fiat, That would be the smartest idea if you are a beginner.

But, I have to say that if you invested already in the bear market, any losses should recover. But, it takes time.

And finally, I will show you how the bear market reacts.

bull-and-bear-market

Check out the graph pattern in the highlighted area.

That’s it for today’s post. Have you learned something new from this?

Leave a comment.

Make sure to check out my other cryptocurrency-related educational posts.

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