If youโve been following crypto for a while, you've definitely heard these two terms.
But what do they really mean โ and more importantly, how to spot them?
๐ BULL MARKET (bullish market)
โ Prices are rising broadly and sustainably.
โ The general sentiment is optimistic, sometimes even euphoric.
โ The media is talking about crypto everywhere. Newbies are flooding in.
โ Everyone seems to be "making money easily".
๐ BEAR MARKET (bearish market)
โ Prices are crashing hard โ often by 50 to 80% or more.
โ The sentiment is in fear, doubt, sometimes despair.
โ The media announces "the death of crypto." Newbies are selling at a loss.
โ The majority of people exit the market.
๐ก What seasoned traders know:
โ Both phases are part of the normal cycle.
โ The bull market creates the illusion that everyone is a genius.
โ The bear market reveals who really had a strategy.
โ ๏ธ The most common danger: buying in the euphoria of a bull market and selling in the panic of a bear market. It's exactly the opposite of what you should do.
Tomorrow: we dive into crypto cycles โ why they repeat, and how to anticipate them. ๐