In a bear market, prices often show a pattern of rising rapidly at first, only to slowly begin to decline over time. On the other hand, in a bull market, prices may suddenly drop but tend to recover steadily afterwards.
Before a bear market starts, you will often see a flood of bad news on a global scale. Surprisingly, even with all this negativity, prices may still temporarily rise. Conversely, before a bull market starts, there may still be frequent negative updates, but the occasional positive news item starts to appear, indicating a potential turnaround.
During a bear market, some cryptocurrencies experience sharp volatility, with prices swinging unpredictably. In a bull market, most cryptocurrencies show a steady upward trend.
One of the main features of a bear market is its devastating effect on altcoins. Over the course of one to two years, many altcoins can drop in value by more than 95%, leaving only a few strong projects that can survive. Currently, most altcoins have already lost around 90% of their value, and further declines are still possible. However, those few promising projects that survive a bear market often become big hits in the next bull market cycle.
When looking at candlestick charts, bear markets are dominated by red candles (indicating falling prices) more than green candles (indicating gains). Prices often move down or remain flat. For individual investors, these periods are very difficult, and most end up with significant losses.
In contrast, a bull market brings a completely different atmosphere. Trading activity and market enthusiasm increase rapidly. Green candles outpace red ones, showing a steady rise in price. Declines in value are rare, and most individual investors are able to make profits, although losses become much less common.
Understanding these differences is vital to navigating the market, whether planning to minimize losses during a bear market or maximize profits in a bull market.
