A bullish cycle is not just about growth: how to understand the two opposite phases of the crypto market

Have you ever caught yourself wondering why professional traders make money in any market conditions, while beginners lose capital? The answer is simple — they understand two key phases that determine the entire dynamics of the cryptocurrency market. Let’s figure out what lies behind the terms “bullish” and “bearish” markets and how this knowledge can help you earn.

When the Bulls Take Over: What Happens During a Growth Market?

A bullish market is not just a period when prices go up. It’s an entire ecosystem of optimism, where everyone believes that tomorrow will be more expensive than today. At such times, cryptocurrencies attract not only experienced investors but also a wave of newcomers who have heard about growth and want to participate.

How to recognize that the bulls are in control:

First, prices are rising confidently and persistently — we’re talking about increases of 20%, 50%, or even hundreds of percent, not just 5% jumps. Second, trading volumes on exchanges become tight — activity increases, liquidity rises, and any order is executed instantly. Third, the news background shifts to positive: favorable regulations are adopted, large companies announce entry into crypto, blockchain projects release significant updates.

Classic example: 2020–2021 became a real bull run for Bitcoin. Its price jumped from $10 000 to $69 000 — one of the most impressive surges in cryptocurrency history. People who believed in growth at the start of the cycle gained multiple profits.

When the Bears Strike: What Does a Bearish Market Look Like?

A bearish market is a mirror image. Fear and uncertainty reign here. Investors massively sell off assets, hoping the decline will stop below. This panic often becomes a self-fulfilling prophecy — the more people sell, the lower prices fall.

Signs that the bears have taken over the market:

Prices drop by 20%, 50%, or even more from their peaks. Trading volumes decline — people are afraid to enter the market and just wait. Negative news starts to circulate: crypto bans in countries, fines for major exchanges, or global economic crises that make investors seek refuge in cash.

Historical example: In 2018, Bitcoin plummeted from $20 000 to $3 000. Those who panicked and sold during the drop lost over 85% of their capital. But those who held their positions or cautiously accumulated at the bottom later gained colossal profits.

Two Sides of the Same Coin: What Sets These Markets Apart?

How to Make Money When the Bulls Are in Control?

In a rising market, the strategy is simple but requires discipline:

Long-term investing — buying cryptocurrencies with a horizon of several years. You believe in the technology and potential, so short-term fluctuations don’t bother you. Bitcoin, Ethereum, and other major projects have historically shown growth over long distances.

HODL — sounds strange, but it works. Just buy and hold, regardless of daily charts. Most profits come to those who haven’t touched their positions for years.

Trend trading — for the more active. You buy during local pullbacks (when the price temporarily drops a few percent) and sell at peaks. This requires attention to charts and understanding of technical analysis.

How Not to Lose Money in a Bear Market?

When the bears are in action, protection is key:

Shorting — an advanced tactic. You sell assets now, hoping to buy them back cheaper later. It sounds paradoxical, but it allows earning even during declines.

Stablecoins — your shield in turbulent times. Transfer capital into USDT or USDC and wait for the situation to improve. It doesn’t generate profit but preserves capital.

Diversification — spread funds across different assets and sectors. Not everything drops at the same rate, and some may even show growth in a general bear market.

When Does the Market Change Direction? Look for These Signals

It’s impossible to predict a reversal exactly, but there are clues:

The market is ready to turn upward when:

• After a prolonged decline, interest in cryptocurrencies suddenly spikes
• Charts show signs of reversal (recovery from the bottom)
• Positive news about institutional adoption appears
• Trading volumes start to grow after a long silence

The market is ready to crash when:

• After impressive growth, volumes suddenly drop (sign of waning interest)
• “Dump” phases begin — sharp price drops over a short period
• Regulators start issuing bans or fines to major players
• The news background becomes increasingly bleak

Practical Advice for Everyone

Understanding the bullish cycle is not just theory — it’s your guide through the crypto market. Professionals constantly analyze which phase they are in and adapt their strategies.

Use technical analysis to confirm reversals, monitor news, diversify your portfolio, and most importantly, don’t let emotions drive your decisions. In a bull market, patience wins; in a bear market, caution prevails. Mastering both approaches will turn you from a market victim into a skilled player.

Frequently Asked Questions for Beginners

How long does each phase last?
A bull market can “run” from a year to three years, delighting investors. A bear market is usually shorter — from several months to two years, but psychologically it can feel like eternity.

Is it really possible to make money during a bear?
Absolutely. Shorting, stablecoins, diversification — these are tools professionals use to profit regardless of market direction.

How to avoid mistakes with the reversal timing?
You can’t completely avoid mistakes, but you can reduce risk. Look at technical analysis, volumes, and news collectively. And remember: the best trades are made when most are afraid.