Bull and bear market transitions: how can ordinary people seize market opportunities?
Let's talk about the matters of bull and bear markets; many people actually haven't paid much attention to the differences between them.
When a bear market comes, it can be quite shocking. At first, the price may spike suddenly, but the good times don't last long, and then it starts to decline. At this point, the whole world is spreading bad news; although prices may occasionally bounce back, that bad news is like a big stone, weighing down prices and preventing them from rising. Especially with cryptocurrencies, the price fluctuations feel like a roller coaster, which can be hard for those with weak hearts to handle.
Speaking of altcoins, the situation is even worse. Many altcoins have plummeted to mere fractions of their value within one or two years, with only a few strong ones managing to hold on. Looking at those altcoins now, most have dropped by 90%, and they might continue to fall further. However, it’s also quite interesting; those altcoins that survive can thrive again in the next bull market, truly a cycle of fortune.
Looking at the candlestick chart, if there are more red than green, the prices seem to be pressed down, either falling or remaining stagnant. At this time, retail investors find it really tough; most people have lost a significant amount of money, feeling quite frustrated.
The bull market is completely different. At the beginning, prices may suddenly drop, but don’t worry, they will gradually recover. During this time, although there are still a lot of bad news, there will occasionally be some good news that provides a breath of fresh air and gives everyone a bit of hope. Most cryptocurrencies tend to rise along with the market, with momentum akin to a rocket launching into space.
The market is bustling; everyone is passionately analyzing charts, and the green bars are almost invisible as prices soar. At this point, there are fewer people losing money, and retail investors find it easier to make profits, resulting in a much more pleasant mood.
Therefore, knowing the difference between bull and bear markets is crucial for our market operations. Whether it’s a bear market where we want to minimize losses or a bull market where we want to maximize gains, we need to have a clear understanding, so we can maneuver through the market with ease.
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