"We're in a Bull run!" "Is this a bull market? No, it's bearish" - There's so much chatter around Bitcoin, Ethereum, Dogecoin, Elon Musk and his spaceship, I mean rocket. Just like Elon Musk, could Bitcoin really be heading to the moon?
Bulls vs Bears. Who wins?
When you hear the words "bull run", what comes to your mind? A farm filled with a bunch of cattle running around? Yeah, no, that's not it. A bull run where crypto and trading is concerned, is a longer period of price growth. Price growth in the value of a stock, or in our case of the cryptocurrency market.
A bear market is the exact opposite. The meaning of a bear market is when the value of a stock or Bitcoin is decreasing for a longer period of time. A bull market is a market that is on the rise and where the economy is sound; while a bear market exists in an economy that is receding, where most assets are declining in value.
Although some investors can be "bearish," the majority of investors are typically "bullish." What kind of investor are you?
We will never advise you to buy or sell any crypto asset. However we do encourage you to do your own research on the asset you're interested in and buy it on your favorite crypto exchange. Which is ChainEX, right? 😁😁
Is that a bull? No, that's a bear
Okay, so a lot of traders struggle to identify which market they're in and in which direction the asset is heading and why it's heading there. The market and price fluctuation is determined by traders. Individuals and organizations.
The terms bull market and bear market are used in all financial markets, including the cryptocurrency market. These words are primarily used in the traditional stock markets, and refer to a price trend:
- A bull market is characterized by optimism, which results in prices increasing.
- A bear market is characterized by pessimism, which results in prices decreasing.
The typical inexperienced trader acts as follows: Bitcoin is rising, so they buy. Bitcoin is decreasing in value, so they sell. Decisions based off of sentiment and how you feel. Whereas the more experienced trader (that's you, right? 😌😌) analyzes the trend and makes a decision based on his or her analysis.
Why is the market named after an animal?
Good question. In a bull market the price of a financial asset has been in a uptrend for a longer period of time. The term originates from the way a bull attacks its prey. A bull uses its horns to thrust up its prey, as an investor you use your capital to push up the price of stocks or cryptocurrency.
During a bull market, investors are very optimistic. This form of optimism is also called being bullish. So when you claim to be bullish, you're actually implying that you’re confident that the prices will increase in the long term. A longer period of positive price movement is referred to as a bull market. Make sense? Yes? Good 😌😌
In a bear market the price of a financial asset decreases continuously. According to many financial platforms and websites a market that decreases 20% or more is considered to be in bear territory.
The fact that a bear is used as symbol of a bear market is also no coincidence. When a bear attacks its opponent, it strikes down with its claws. This too can be accurately compared with the decreasing stock and cryptocurrency prices.
Up or down. Choose a side, Bitcoin!
Bitcoin can be compared to a person who cares what people think about them. If the crowd says "Bitcoin, you're so useless!", he gets all sad and goes to sleep. But if the crowd encourages him, he gets pumped and does his best. Make sense?
It is good to know that the cryptocurrency market is an alternation between bull markets and bear markets. And also that a short upswing is not necessarily a transition from a bull market to a bear market.
For example, a temporary drop does not necessarily mean a bear market. If prices continue to rise in the long term, we are still talking about a bull market. For example, 2017 has not been the only Bitcoin bull market, and there have also been several periods of structural bitcoin decline. If you look at the longer term, you will see that the value of bitcoin has generally only increased.
Unfortunately we can’t predict the future, but we’re all excited about what the future of Bitcoin and cryptocurrency will look like. Aren't you? 😀😀 I mean, look at Bitcoin and Ethereum!
Can you buy BTC & ETH on ChainEX?
A resounding YES. 😀 Buying and selling your digital assets on ChainEX has never been easier. I mean, you've heard of and seen our quick buy & quick sell feature, right? Without further ado, here's how to buy your favorite coin on ChainEX:
So what should you do now?
Now? Well, now you register for ChainEX, download the app and trade your favorite coin! Be sure to do your own market research before diving in.
Invite a friend to ChainEX and earn more rewards! Plus you’ll be partnering with what could potentially be the best cryptocurrency exchange in South Africa. I mean, EVERYONE is talking about ChainEX. Need more info? Here's a video:
ChainEX is a South African digital asset exchange that provides a platform for South Africans to buy, sell, or trade a variety of different digital assets using the South African rand as the default fiat-buying currency. And also the first South African crypto exchange to list Bitcoin Vault, YFI, SUSHI, LINK & UNI! The South African crypto market is growing by the day!
ChainEX provides you with a secure, online platform from which you can purchase and trade with different digital assets. But you know this already 😄
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There is no such thing as a 100% safe investment, and each decision has its risks. In any case, it is up to you to decide. All content and topics covered are mere opinions and do not constitute investment advice. Trading and investing in Bitcoin or any cryptocurrency carries a high level of risk. We do not assume any responsibility for actions taken upon reading any of our articles. ChainEX is not a financial advisory firm, investment manager, or financial consultant.