#BTCOutlook
A lot of people frequently fail to notice the differences between bull and bear markets. This is a condensed explanation:
In a bear market, prices may initially rise quickly but tend to decline gradually over time. Conversely, during a bull market, prices might drop sharply at first but generally recover steadily.
Bear markets are often preceded by a wave of global negative news.
Interestingly, despite the overwhelming pessimism, prices can still rise briefly.
Before a bull market begins, negative news may persist, but occasional positive updates start to emerge, hinting at a potential turnaround.
During a bear market, certain cryptocurrencies experience sharp and unpredictable price swings. In contrast, bull markets typically see a consistent upward trajectory across most cryptocurrencies.
A notable hallmark of a bear market is its harsh impact on altcoins.
Over a period of one to two years, many altcoins can lose over 95% of their value, leaving only the strongest projects to survive.
Currently, most altcoins have already shed around 90% of their value, with further losses possible.
However, the projects that endure the bear market often thrive during the next bull cycle.
When analyzing candlestick charts, bear markets are dominated by red candles (indicating price drops) with downward or stagnant price movements.
These periods are particularly challenging for retail investors, many of whom suffer significant losses.
Bull markets, on the other hand, bring renewed optimism and increased trading activity. Green candles (indicating price gains) far outnumber red ones, and prices rise steadily.
Losses become less frequent, and most retail investors manage to secure profits.
Understanding these key differences is essential for navigating the market effectively, whether the goal is to minimize losses during a bear market or maximize gains during a bull market.