Many people often overlook the significant differences between a bull market and a bear market. In short:
A bear market typically begins with a short-term surge in prices, followed by a gradual transition into a sustained downward trend. In contrast, a bull market often experiences a quick rebound and maintains upward momentum after a brief price correction.
Before a bear market arrives, despite the overwhelming negative news globally, the market may still exhibit unusual upward movements; while in the early stages of a bull market, although there may be some negative sentiments, positive market signals occasionally emerge.
During a bear market, the prices of the vast majority of cryptocurrencies fluctuate wildly, with frequent alternations between rises and falls; while a bull market generally witnesses continuous price increases across most coins.
One notable characteristic of a bear market is that the value of many altcoins may significantly shrink within a year or two, sometimes exceeding 90%. Currently, many altcoins are already in such a declining range, and there's a possibility they could continue to drop in the future.
Only a few promising coins can survive in a bear market and recover in the subsequent bull market. During the bear market phase, the number of bearish candlesticks on the chart is relatively high, mainly reflecting downward price fluctuations, making it generally difficult for retail investors to profit, with losses being quite common.
In contrast, during a bull market, trading volume and market activity continue to rise, with bullish candlesticks dominating the chart, and price declines are relatively rare. Retail investors can generally profit, with losses being less frequent.