Crypto investors have been facing the random downfall of several cryptos this year. A bear market is taking place currently. Though between the ups and downs, this week was quite favorable in comparison to the previous days. Some cryptos were able to raise their prices a little bit. Yet the market is in a bearish position. Top cryptos like Bitcoin, Ethereum, and Tether have fallen lower than Before.
Despite having a bearish market, bullish sentiment continues in the crypto market. Which increases the concern about the upcoming bull run! Does the next bull run in its way? The question arises. To get logical anticipation, first, the bull and bear run should be discussed.
When Does The Bull Market Start?
When the asset’s price is at its peak and investors are confident about selling, the Bull Market arises. This condition is favorable for crypto investors and sellers. The positive graph movement is seen in the market in the Bullish run. Especially, when the economy is in good condition and the employment levels are high, a bull run occurs.
An average price increase rate is 40% during a bull run. If the crypto market’s price increases up to 40% and stays for one to two days, then it is considered a bull run. Investors start a bull market by purchasing securities through selling pressure.
When the demand becomes higher than the supply, the price increases. On the other hand, if supply is exceeded by demand and the price falls then it is an indication of the start of a bear market.
Indicators Of A Bull Run :
- High price (approximately 40%) and stays for one to two days long
- Investors start to sell
- High confidence of investors and optimism
- supply is exceeded by demand
- A strong economy and high employment level
When Does A Bearish Condition Occur?
A bear market can be explained by one word which is low price or price fall. When the crypto value falls randomly for a long time, it is considered a bear market. Naturally, 20% fall and its continuity refers to a bearish condition.
For the last couple of months, the crypto market has been facing a bearish market. Apart from this current situation, the condition of the crypto market during 2017 is a perfect example of a bear market. At that time Bitcoin (BTC) fell from $20,000 to $3,200.
A bearish market takes the place when traders start to purchase assets and the supply is greater than the demand. Another strong indicator of the bear market is the lack of investors’ confidence about return and optimism.
Indicators Of A Bull Run :
- Low price (Approximately 20%)
- Buying pressure
- Supply is greater than demand
- Lack of investors’ confidence and optimism
- A slow economy and a high unemployment rate
Why Does Bullish Sentiment Continue During Bearish Conditions?
The bearish market is dominating the crypto market. The expected activity is to get high buying pressure as the price falls. Where investors have to hold their assets during this bear market. But the current selling pressure is not expected during this downfall. Selling or bullish sentiment is used during a bull run. This time the price is high and it is profitable as always. Instead, why does the bullish sentiment continue?
It might be a profit-seeking step taken by the investors. Selling during bear runs can also be a profit-raising activity if it is applied for the long run. Selling during bearish conditions and waiting for the detection of trends than the current situation might be a smart strategy. After reducing the price more, the selling can be bought again at a further low rate and sell it in the next bull run! Though this is quite risky to get the right forecast before investing. But updating with crypto news and market strategy can help to be a player in the bear market!