What is a bull and bear market ?
A Bull market is a market when prices go up while a bear is a market when prices go down. In other words a rising market is called bull market while a declining market is called bear market. Each has its own pitfall and set of opportunities. CryptoCurrency, real estate , stocks or any other assets are described in two ways which are bull and bear market. These terms are reserved for the movement over longer period of upward or downward. 20% in price swing of upward or downward is accepted widely.
So a bull market is a time when investors have high confidence and everyone is buying , and prices keep rising. For example when prices move upward quickly , this shows that investors are positive about the market and are bullish about the market that the prices will rise further. Which may feel you the start of the bullish market.
Investors who believe into the bullish market are knowns as bulls. When confidence of investors is high then it gives a positive feedback which causes further investment into the markets as a result prices pump highly which is called bullish market. Markets move by confidence from the public, they measure it by the optimistic attitude of the investors.
During the bull market we may see dips and corrections over a short period of time which may scare some investors which invested higher amounts than they can afford to lose. There are other investors who believe these dips can be very profitable and buy considering it the opportunity to take profit.
It has been observed from my past experience that bull markets dont last forever, because the investors lose confidence ,this can be die to a number of reasons. Mostly happens because of bad news like ban on cryoto currency. When prices decline heavily then it may sign for the bear market. Investors sell their assets in order to stop further loss.
On the other hand a bear market is when the supply is greater than demand and investors have very low confidence, Prices fall sharply. Investirs who see prices will fall continuously are called bears. It could be a high risk to trade bear market for the beginners or traders with less experience.
Its very difficult go know that when bears will end and bulls will start as no one has this ability to predict the market future. Those investors who have longterm vision they dont care about bull or bear, such investirs continue to invest as a strong believer.
Thats it for today.
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About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends. He Spends most of the time on Threads.
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