In this article, I will explain Bull and Bear Market definitions and strategies.
Both have different characteristics and as a result, we have to use different strategies.
What is a Bull Market?
A bull market is the condition of a financial market of a group of securities in which prices are rising or are expected to rise.
Bull markets are defined by the market going up aggressively over a period of time. In a bull run, you can see the rising attention of people.
The term “Bull” comes from the way how bulls attack. While attacking its opponent, a bull thrusts its horns up into the air, like a big green candle in the market graph.
The most well-known character of a bull market is investors CONFIDENCE about their investment.
They think that the market will go even up and so their investment too.
There is not an exact definition of a bull market. I will show you the last Bitcoin (BTC) bull run below.
Date: September 15, 2017 – BTC price was 3.019,63 USD
Date: December 17, 2017 – BTC price was 19.991,60 USD
That was a solid bull market. Price went up almost x7 in four months.
My Bull Market Strategies
My current bull market strategy is to take profits from my investments which I bought on the bear market.
That’s my way in the cryptocurrency market. So the bull market is the best way to take profit from your holdings.
Moreover, Day Trading can be a good strategy in a bull market as the move of the market tends to go upside. Long positions with leverage can really work well.
What is a Bear Market?
Opposite of bull market, bear markets are defined by the market going down aggressively over a period of time. In a bear market, you can see the rising depression of people.
The term “Bear” comes from the way how bears attack. While attacking its opponent, Bear swipes downward with their paws, like a big red candle in the market graph.
The most well-known character of a bear market is investors FEAR about their investment.
I will show you the Bitcoin (BTC) bear market below.
Date: December 17, 2017 – BTC price was 19.991,60 USD
Date: December 16, 2018 – BTC price was 3.252,84 USD
That was a bear market. Price went down almost x7 in one year.
My Bear Market Strategies
Bear markets are the best way to accumulate more and more.
Filling your bag with undervalued coins is something very important.
If the price goes down more, buy more. That’s my main bear market strategy, so I will have more coins to sell in a bull run.
Also, shorting with leverage can work well in a bear market too.
References
https://www.investopedia.com/ask/answers/bull-bear-market-names/
https://www.thestreet.com/markets/what-is-a-bull-market-14710295
