The question arises, under what circumstances will a bull market occur?
All rising secondary trading markets in this world share a common point: resolving trapped positions.
For the market to rise, favorable news actually has little effect.
You must alleviate the selling pressure from positions in the market.
Utilize the greed of those who want to earn more to keep them in their positions.
Either the new capital is greater than the selling pressure from existing positions, and whatever you sell will be bought.
Because in order for a product not to depreciate, buyer demand is dominant.
When the selling of coins does not affect the coin price and can last for a long time, that’s when a bull market will occur.
This aspect is quite simple; think about the current market, if you are optimistic about a certain coin, would you dare to buy it when there is a large amount of selling? If you can buy without worries about holding positions—then it is a bull market.
Another way to resolve trapped positions and form a short-term bull market cycle is through a black swan event, where a large number of holders flee at any cost, selling at low prices. When these chips are exchanged for new investors after a significant drop in stock prices, the market can rebound without the need for trading volume.
This forms a brief and rapid upward movement in the bull market cycle, and when most people reach the peak of profit, the market will again experience a downward trend.
Thus, the emergence of a bull market has one reason: when problems arise in the market and remain unresolved, and when the issues escalate to a certain extent, the problems will naturally resolve themselves, leading to a bull market.
It’s just a matter of how long the bull lasts.
A bull market is all about emotion, devoid of value. $BTC