Understanding How Crypto Bull Run and Bear Run Works

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If there is something that we know the crypto space for, it is the fact that it is highly volatile in nature. Within a shift of an eye, you can huge amount of money and at the same time, you can lose huge amount of money. It works in two. The volatility nature of the crypto market can offer you a lot of profit and agree the same time can offer you a lot of losses. One of the ways a lot of traders have arranged over these volatility is to understand how the market works properly.

When it comes to the crypto market, it has two major market phases that happen occasionally. We have the crypto bull run and we have the crypto bear run. Both made up the crypto market phase and they have their distinctive features on how they perform. I will start by first discussing about the crypto bull run. A bull run most of the time is associated with the price of the crypto market during high massively.

Most of the times during the crypto bull run, we usually witness a massive rise in the price, not only that but also the reading volume will increase and generally activities in the crypto market. Every bull run always help to bring in positive sentiments. Most of the time, people just wished for bull run to come like that. It does not work that way, there are certain factors that go a long way to determine whether there will be a bull run in the crypto market.

The first factor that always affect the crypto bull run is the market adoption. Most of the time, if the market is moving to another direction, it thrives a massive crypto bull run to happen. Not only that also, when there is also a positive news most of the times happening in the crypto space probably whether there is a major new government policy that favours crypto or a major company or individual buys a whole lot of bitcoin, it can help to thrive the coin upward massively.

There are also other factors that contribute to crypto bull run like the halving events of the btocin which happen every four years and many more. We have had examples of bull run like the one that happen in 2021 and many more.

Now that I have talked about the bull run, let me briefly talk about the bear run. Bear Run seems just the opposite of the bull run most of the time. During the bear run market phase, most of the prices are facing the downtrend momentum and always find it hard to overcome. In fact bear run is always correspondence to loss of funds most of the time.

When it comes to bear run, there are a whole lot of factors or reasons that can actually cause it. The first is fear. Some people call it the fomo which is always call fear of missing out. There is always market panic during the bear run and most of the time causes a lot of people to sell, the more people sell, the more there is selling pressure which causes the price of the assets or crypto tokens to keep bleeding.

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Of course there are other factors that influence the bear run to happen. Examples like macroeconomic factors, market correction and many more. Most of the time, people did not actually like the bear run because it is always associated with bear run. Bear Run is always bleeding massively and that is why people associate with bull run. Every after the bull run, there comes the bear run. Most of the time, the bear run lasts for many years before the bull run kickstart again.

If you have been reading this article from the beginning, I am so sure your question might be how can I really navigate this bull and bear run. Well I will be talking about it right now. The truth is, both bear and bull run is not always difficult to actually navigate if you truly know how it behaves. Most of the time, during the bull run, what people do or should I say investors is to sell off.

Of course that might have been what is expected. People sell their asset during the bull run because the price will surge high. That will be the right time to make maximum profit much more than before as it was. When it comes to the period of bear run, most people hodl because the situation will not favour you to actually sell. That is why most people always prefer to sell during bull run when the price is much more better.

As the crypto space keeps evolving and keeps getting better, it is evident that we continually will have both bear and bull run. The most important thing is for us to know how to position ourselves so that we can know how to trade in different market phases as it comes.