TL; DR:

You don’t know if you are on a bull or bear? This guide spreads, how to notice the difference by means of price data, size, sentiments and data onchain. Learn how to recognize market cycles, what signals should be observed and how to adapt your strategy for each phase so that you can trade wiser.

Cryptographic markets can feel like emotional rollers, prices rise in one month, followed by a failure of the next. You are not alone if you have ever wondered if you are in a bull or bears.

On the simplest dates:

• The bull market takes place when prices are rising, people are excited and there is a general feeling that the future is clear. Return to the end of 2020 and at the beginning of 2021; Bitcoin (BTC) increased from around USD 10,000 to almost USD 70,000. The novel projects started every day and I felt that everyone, from your cousin to the Uber driver, bought crypto.

• On the other hand, the bears are intended to consistently fall, investors withdraw and sentiments. A good example? 2022. After reaching the highest levels, the market fell. Bitcoin has fallen below USD 20,000, the projects have fallen (do you remember Terra?), And even experienced traders began to discuss “building a bear”.

Knowledge about what market you are on, helps to make smarter movements, and that’s why it all matters. You don’t want to monkey in Memecoins during panic punting or selling just before reflection.

Diagnosis of market phases helps to invest more strategically, manage risk and, most importantly, maintain control over emotions. Which in cryptography is half the battle.

Do you know? In the eighteenth-century England, “Bearskin Jobbers” were early miniature sellers, traders who sold Bearskins, which they did not have yet, the prices of the plants would fall. The saying “Do not sell a bear skin before you caught a bear”, just like a metaphor. The term bull came later, not only as the opposite of the bear, but also because of the movement of the bull’s horns during the attack.

Understanding the markets of bulls and bears

Sure, crypto is “numbers on the chart”. But these are also stories, headers and the constantly changing mood of all communities. Here’s how to understand Bull and Bear cycles:

1. Characteristics of the bull market

a) lasting price increases

Of course, prices are rising on the bull market. It is more crucial that they are still growing, often for weeks or months. You will see the main coins climbing constantly, and Altcoins ride on the wave.

An example of a textbook? Bitcoin’s Run in 2020–2021, where he jumped from ~ USD 10,000 to USD 69,000. So he had momentum, institutional support (Tesla, strategy, etc.) and earnest retail.

Or a sprint powered by Dogecoin memes at the beginning of 2021, from the status of jokes to 0.45 USD thanks to Tweets Elon and Reddit Hype.

b) positive moods of investors

You will know that the sentiment is stubborn when X feels euphoric, everyone calls for BTC moonshot, and novel projects are launched every day with valuations at heaven. Money flows quickly and even risky plants seem obvious. Then you know that the positive moods of investors are in the air.

c) favorable economic indicators

Bull Runs often combines with low interest rates, effortless access to credit and generally cordial conditions. For example, during a bull in 2020, stimuli from the time of pandemic and low loan costs gave retail and institutional investors more ammunition implement to digital resources.

2. Characteristics of the Bear

a) prolonged price drops

Bear markets will pull until the cows return home. Prices fall and then fall, and each compact reflection is sold. Think about “Crypto Winter” from 2018, when Bitcoin crashed from USD 20,000 to around USD 3000.

Or a brutal crisis in 2022, when BTC fell from USD 69,000 to less than USD 20,000. In this case, it was not about the price; It was powered by implosion, such as Terra-Luna, Celsius and the FTX scandal. Domino just fell.

Bear markets tend to the end of the event.

b) negative moods of investors

During the bear phases, fear takes control. The headers become gloomy, social media are still, and even die -hard belieors begin to question their beliefs. Financing dries, developers teams are still, and the jokes of “exit of liquidity” are celebrating.

c) unfavorable economic conditions

Intens macro do not aid. High interest rates, inflation fears or exacerbation of monetary policy often worsen the situation. For example, in 2022, aggressive Fed interest rate increases made risk assets, including cryptography, much less attractive.

Key indicators of market phase identification

Although no single record can give you 100% certainty, there are several tested indicators on which traders and analysts are involved. Let’s break the indicators that you can operate in addition to obvious (prices).

Commercial volume

The volume says how much conviction is behind the price movements.

On the bull market, rising prices are often supported by a mighty volume of trading. More buyers enter, more liquidity enters the market, and the rally seems to be supported.

During the bear, the volume tends to droughty. Price drops are found with penniless purchase pressure and it may seem that nobody wants to touch the market.

Low volume plus a decreasing price? This is not a great sign if you hope to reflect.

Do you know? During Bull in 2021, Dogecoin experienced the growth of the commercial volume, with almost 70 billion dollars in one day, because its price increased to 0.45 USD

Market moods

One of the tools that many investors are is the Crypto Fear & Greed index. It measures social media activity, volatility, Google search trends and others to assess whether investors feel confident (greedy) or negative (terrifying).

Extreme greed often appears at the top.

Extreme fear appears near DNA, although it can spin in deeper conditions.

Check it out every day, but don’t let him drive the entire strategy. It’s a mood ring, not a crystal.

Technical indicators

You don’t have to be a chart wizard to see some helpful signals.

• Medium movable: When the price is consistently above the 200-day movable average, it is generally stubborn. When it is immersed below, it is often a warning sign. These are long -term trend indicators, not daily trading tools.

• Relative force indicator (RSI): It measures whether the resource is bought or sold out: readings above 70 suggest that it is overheated and withdrawn, while readings below 30 may indicate that it is overtaken with the potential of reflection.

Nothing is the Gospel of it, but it helps you feel the rush.

Basic factors

Sometimes the biggest market moves do not appear on the chart.

Liquid characters may include:

Meanwhile, bears often look like:

When you know what to look for, the next step is to determine where. Fortunately, Crypto has a treasurer of free tools if you know where to dig.

Chart platforms

If you want to understand the price, you need solid charts.

• Tradingview is known for configurable technical charts and indicators.

• Cointelegraph offers a clear review of prices, market hats and volume trends, which are particularly useful for tracking newer or smaller tokens.

Do you know? TRADINGVIEW chart tools are integrated directly with many of the world’s best cryptocurrency exchanges in the world, including Binance, Bybit, OKX and Bitget.

Sentiments analysis

Krypto is more mood than mathematics.

Tools such as LunarCrush path Social media activity, influential faces and tokens trends. If Dogecoin starts to heat up again, you’ll probably see early signs there.

Onchain data

Do you want to know what whales are doing? Platforms such as Glassnode and Cryptoquant Surface Data, such as portfolio flows, miner activity and exchange balance. It’s like reading blockchain’s heartbeat. You will often notice capital changes before they appear in the price.

Navigation strategies after various market conditions

Understanding the cycle is one thing. Knowledge about how to do it is another one. Your textbook should change depending on whether you are going on a bull or survive the bear.

Bull market strategies

• Trend follows: When the market is scorching, sometimes the best move is to run, but it will remain disciplined. Focus on resources in mighty growth structures and don’t get caught in chasing green candles without a plan.

• Applying profits: Set the goals and respect them. It is effortless to be greedy when everything is pumped, but attracting profits on the way helps to avoid a terrifying both ways: watching your profits disappear in the next payments.

• Risk management: Even the bull market goes back. Apply detention or stops to block profits and guard against surprises. You will thank you later.

Bear strategies

• Defensive positioning: Sometimes trade is not the smartest trade. Transferring part of the portfolio to Stablecouins or sticking to less unstable assets such as Bitcoin and Ether (Ether) can aid maintain capital, while other panic.

• Average costly dollar (DCA): Are you trying to give a exact bottom? Good luck. DCA smoothes ride, spreading its entries over time, lowering the average cost and helping to remain involved without excessive harvesting.

• Focus on the basics: Bear markets remove noise. Designs with real operate, mighty teams and a long -term vision are survived. If you stick to the crisis, make sure you stick to the right reasons.

Without preparing, you are preparing for failure

Bull or Bear, Crypto never stops moving, but that doesn’t mean you have to react to every swing. Price trends, changes in sentiments, volume patterns and bases can make you where you are in the cycle. Armed with appropriate tools and a tranquil way of thinking, you can tune the noise and act with clarity.

Markets reward preparation, and knowledge about whether you are on the territory of Bull or the Bear is one of the most powerful tools you may have.

Ecstatic trade!

This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.