A bull run is a period of strong upward movement in financial markets, characterized by a continuous and strong rise in prices due to economic, technical and political factors. Although there is no fixed timing for it, it can be identified through clear signals and stages.
1. Bull run start and end times 🕒🔄
the beginning:
Bull runs often start after a long period of stagnation or a significant drop in prices (Bear Market).
Reasons for starting:
Technological developments: such as the adoption of digital currencies in financial systems or the emergence of innovative technology. 🖥️💡
Supportive legislation: Issuing laws and legislation that encourage investment in the markets. 📜✅
Positive news: Cryptocurrencies are being accepted by major financial institutions, such as the launch of Bitcoin ETFs. 📰📈
Increased investor confidence: as a result of an improved economic situation or a positive outlook on the markets.
the end:
Bull runs end when signs of market weakness appear, such as:
Prices stabilize and then fall continuously. 📉
Prices reach exaggerated levels that do not correspond to the real value. 🎈⚠️
Heavy selling from major investors (whales). 🐳🔻
Increased negative sentiment in the market due to bad news or economic concerns.
2. The basic stages of the bull run 🚀📊
Urine run can be divided into four main stages, which differ in their nature and signs:
Stage 1: Stealth Phase
It is characterized by the accumulation of investments by professional or smart investors (Smart Money).
Signals:
Lack of media coverage. 🤐
Low prices with a gradual and steady rise. 📊✅
Early investors buy based on long-term analysis.
Stage 2: Early Awareness Phase
Regular investors are starting to enter the market as there is increasing interest.
Signals:
Positive media reports emerge. 📰✨
Prices rise at a faster rate as new money comes in. 💸📈
Increase trading volume gradually.
Phase 3: Mania Phase
This phase begins when the market enters a state of over-excitement.
Signals:
A huge and rapid increase in prices. 🤩🚀
New investors are entering driven by the fear of missing out (FOMO). 😱📈
Excessive and unrealistic expectations, such as “prices will never go down.” 💭
Significant increase in daily trading volume. 🔥💹
Stage 4: Blow-off Phase
The market reaches its peak and a sharp decline begins.
Signals:
Negative news leads to loss of confidence. 📰❌
Heavy selling leads to price collapse. 📉
Sharp price fluctuations over short periods. 📈📉
Major investors exit and panic selling begins. 😰
3. How to predict when a bull run is about to end? 🚪📉
You can prepare for the end of the bull run by watching for the following signs:
Price inflation:
If you notice that prices are far above their actual value, the market may be close to a correction. 🤑📢
Increased media hype:
When cryptocurrencies become too much of a news story. 📰🔊
High volatility:
If prices start to swing violently over short periods, this is an indication of market instability. 📉📈
Major portfolio activity:
When you notice large sales by "whales" via tools like Glassnode. 🐳🔎
4. Strategies to reduce losses and benefit from profits 🛡️📊
To get the most out of your urine while minimizing the risks:
Planning ahead:
Have a pre-defined exit plan based on your investment goals. 🎯💰
Partial selling technique:
Sell part of your assets at every big rise to secure profits. 📤📈
Technical analysis:
Use indicators such as:
Relative Strength Index (RSI) to identify overbought conditions.
Moving Averages to understand long-term trends. 📉📏
Managing emotions:
Don't make decisions based on fear or greed. Sticking to your plan is the key to success. 😌🧠