The term bullish and bearish is used to describe types of market in crypto though it is used in the financial market as a whole.
In the stock market bull market is described by a 20% increase in stock price while bear market is denoted by 20% fall in price.
A 20% increase in the crypto asset is possible without changing the overall sentiment of the market.
Nevertheless 20% increase in bitcoin is rare and it will take more time but a consistent increase in price can make it possible.
What can we regard as a bull market in crypto?
Bull market in crypto
Bull market in crypto is not characterized by an increase in a particular cryptocurrency but it is a consistent rise in the price of all major cryptocurrencies.
Note the word “consistent”. There is no bull market if the price is not sustainable while increasing at intervals.
Bear market in crypto
The bear market is the opposite of the bull market and is characterized by a persistent fall in the price of crypto assets.
Jokingly, it is referred to as a bloody market because all major cryptocurrencies will experience a continuous fall in price.
Difference between the type of market in crypto.
There’s no other difference other than being the opposite of each other.
It should also be noted that the sharp increase in price of crypto assets is not a bull market why a sharp decrease in price is not a bear market.
What determines both the bull and bear market is the consistency in either of the trend.
Investment opportunity in the bull market
The market mostly is for taking profits.
Notwithstanding every retracement in price provides another buying opportunity.
You can easily buy any crypto asset in the bull market and make profit.
Investment opportunity in bear market
A bear market does not present much opportunity. In fact, long term hodlers are getting scared.
The bear market comes with low confidence and more selling pressure. Nevertheless, it does come with its own opportunities.
One of the opportunities is buying cryptocurrency at a lower price. You can use dollar cost averaging.
That is not all, the bear market is a test of sustainable projects. Many cryptocurrency will come out during the bull market but they will be nowhere to be found during the bear market due to lack of sustainability.
How to make profit in both the Bull and Bear market
If there is anything that is important. It is making profit.
You can earn interest on your stablecoin by staking them on Kumo wallet which gives you the opportunity to earn more money on your crypto assets irrespective of the market.
Do you miss any of this?
Basics of blockchain technology
History of blockchain technology
Introduction to cryptocurrency
Different types of cryptocurrency.
Types of cryptocurrency wallets
Beginner’s guide to crypto trading
About Kumo
Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
Kumo wallet is your all-in-one social payment app for seamless payment solutions.
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