Let’s break down the key differences between bull and bear markets in a way that’s easy to understand.
In a bear market, prices often start with a quick rise, but over time, they tend to drift downward slowly. On the other hand, in a bull market, prices might drop suddenly now and then, but they usually bounce back steadily.
Before a bear market takes hold, the news is often overwhelmingly negative—global problems, bad economic reports, and so on. Despite this, prices might still rise for a little while, which can feel confusing. In contrast, before a bull market begins, you’ll still hear plenty of bad news, but you might start noticing bits of good news sprinkled in, hinting at a shift.
During a bear market, the ride gets rough. Some cryptocurrencies swing wildly in price, making it hard to predict what’s next. But in a bull market, the mood shifts—most cryptocurrencies show consistent growth, and the overall trend is upward.
Bear markets hit altcoins especially hard. Over one to two years, many of them lose more than 95% of their value, leaving only the strongest projects standing. Right now, many altcoins have already dropped around 90%, and they could fall even further. But here’s the silver lining: the projects that survive often go on to become huge winners in the next bull market.
When you look at price charts in a bear market, you’ll notice more red candles (showing price drops) than green ones (showing gains). Prices either go down or just don’t move much. For regular investors, this period can be brutal—most end up losing money.
A bull market feels completely different. Trading activity picks up, excitement returns, and prices climb steadily. Green candles dominate the charts, and while prices might dip occasionally, losses are rare. For most investors, this is when profits come much more easily.
The key takeaway? Understanding how bull and bear markets behave can help you navigate them better. In a bear market, the goal is survival and limiting losses.