What is the market trend?

Market trend is the general direction where the price of an asset is headed. In Technical Analysis, market trends are typically identified using price action, trend lines or even Moving Averages

In general, there are two main types of market trends: bull market and bear market. A bull market (or bullish trader's market) consists of a continuous uptrend, where prices are constantly rising. A bear market consists of a continuous downtrend, where prices are constantly falling. In addition, we can also identify consolidating or "sideways" markets where there is no clear trend.

Bitcoin has been in a bull market throughout its existence.

It is worth noting that a market trend does not mean that the price will always move in that direction. An extended bull market will have smaller bearish trends, and vice versa. This is simply the nature of market trends. It is a matter of perspective because it all depends on the time frame you are looking at. Market trends on higher time frames are always more important than market trends on lower time frames.

One of the peculiarities of market trends is that they can only be determined with absolute certainty in retrospect. You may have heard of the concept of hindsight bias, which refers to the tendency of people to convince themselves that they accurately predicted an event before it happened. As you might imagine, market hindsight bias can have a significant impact on the process of identifying market trends and making trading decisions.