S4B Crypto Contest - Season 14

Hello everyone,
It's your favorite Steemian @rakiya from Nigeria and I'm delighted to join in this contest organized by @waqarahmadshah in this noble community today. It's a wonderful contest and I love to share my participation in it.

Source

How do bull and bear markets in cryptocurrency differ from traditional stock market cycles?

Since cryptocurrency is a virtual currency and stock is a real world asset such as shares in a company, the fluctuations in the cryptocurrency is high due to lack of regulations whereas the fluctuations in the stock market is relatively very low due to the regulations imposed in the market.

So the fluctuations in the bull and bear market in the cryptocurrency market is much because of the lack of the regulation whereas stock market has little fluctuations and from record, the stock market has been around for hundreds of years where the cryptocurrency market is just a few years old.

Also another thing that makes the fluctuations in the cryptocurrency market much is because cryptocurrency can be access by anyone anywhere and at anytime but the stock market is restricted and can only be seen in some places.

What are the key indicators that signal the transition from a bear to a bull market in crypto?

Based on experience using the RSI indicator, one of the signal that tells us that we are moving from a bearish market to a bullish market is when the market reaches it oversold region. From the indicator, when an asset is oversold it then implies that buyers will come in and then push the market upward.

Source

Also using the moving average indicator where you have lines above and below the price chart. When the moving average line is seen below the price chart, it means that the market is about to make a turn from bearish to bullish.

Also the EMA which is the exponential moving average which is made of two lines. Here when there is a crossing between the lower and the higher moving average line, it signifies that the market is about to take another direction i.e if the market was bearish and suddenly we see this crossing it means that the market is about to turn bullish.

Describe the psychological factors that influence investor behavior during crypto bull and bear markets.

The two major factors that influence Inveators during a bull or bear market is fear and greed. When there is fear and greed this makes investors to remove their money causing a downtrend while others pump more money causing greed.

Source

So all of these works hand in hand. While others are scared there are others who are hoping that the price of the asset may go even higher and that that can make more gains and profit and for that reason they will keep pumping money.

Others will remove their money because of fear and when they see the price going higher they will wished they didn't remove their money in the first place. So all of these are ways investors get influnce during the bull and bear market.

I invite
@m-fdo
@bossj23
@lhorgic