Bearish & Bullish
In crypto trading (and financial markets in general), bearish and bullish are terms used to describe market trends, sentiments, or outlooks.
1. Bullish:
A bullish market or sentiment means that traders and investors expect the price of a cryptocurrency (or the market as a whole) to rise.
A bullish trader believes that the value of an asset will increase, so they are more likely to buy or hold, expecting future gains.
In charts, a bullish trend typically shows prices moving upward consistently, with higher highs and higher lows.
2. Bearish:
A bearish market or sentiment means that traders expect the price of a cryptocurrency (or the overall market) to fall.
A bearish trader believes that the value of an asset will decrease, so they are more likely to sell or avoid buying, expecting further declines.
On a price chart, a bearish trend is characterized by falling prices, with lower highs and lower lows.
These terms originate from how bulls and bears attack: bulls thrust their horns upward (representing price going up), while bears swipe their paws downward (representing price going down).