Pl make us understand

Many people overlook the clear differences between bull and bear markets. Let’s break it down in simple terms.

In a bear market, prices often show a pattern of rising quickly at first, only to slowly fall over time. On the other hand, in a bull market, prices might drop suddenly but tend to recover steadily afterward.

Before a bear market starts, you’ll often see a flood of bad news on a global scale. Surprisingly, even with all this negativity, prices might still rise temporarily. Conversely, just before a bull market begins, there may still be frequent negative updates, but occasional positive news starts to surface, signaling a potential shift.

During a bear market, certain cryptocurrencies experience sharp ups and downs, with prices swinging unpredictably. In a bull market, most cryptocurrencies show a consistent upward trend.

One key feature of a bear market is its devastating effect on altcoins. Over one to two years, the value of many altcoins can drop by over 95%, leaving only a handful of strong projects able to survive. Right now, most altcoins have already lost around 90% of their value, and further declines could still happen. However, those few promising projects that make it through the bear market often become major successes in the next bull cycle.

Looking at candlestick charts, bear markets are dominated by more red candles (indicating price drops) than green ones (indicating gains). Prices mostly move downward or remain stagnant. For retail investors, these periods are highly challenging, and most end up facing significant losses.

In contrast, a bull market brings an entirely different atmosphere. Trading activity and market enthusiasm increase rapidly. Green candles outnumber red ones, showing a steady rise in prices. Drops in value are rare, and most retail investors manage to turn a profit, with losses becoming far less common.

Understanding these differences is crucial for navigating the market, whether it’s planning to minimize losses during a bear market or maximizing gains in a bull market.