Markets & Sentiment
Bull and bear markets explained
Bull market / Bear market
Quick definition: A bull market is a prolonged period of rising prices; a bear market is a prolonged period of falling prices.
In an uptrend, pullbacks are usually bought quickly. In a downtrend, rallies are usually sold into.
A common convention: a drop of more than 20% from the peak is considered entering a bear market.
Strategy differs by phase: in bull markets, prioritize holding positions with the trend; in bear markets, prioritize preserving capital and selective DCA.
💡 Example
📊 Read the morning market brief →BTC rising from $16,000 (late 2022) to above $100,000 (late 2024) is a classic bull market cycle.
Related terms
Bitcoin halvingHalving is the event in which the reward for Bitcoin miners is cut in half, occurring roughly every 4 years.…ATHATH is the highest price an asset has ever reached. ATL (All-Time Low) is the lowest.…FOMOFOMO is the fear of missing out on an opportunity, which drives people to rush in and buy after the price has …DCA (dollar-cost averaging)DCA is a strategy of splitting your money into smaller amounts and buying regularly over time (or at set price…
Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.