Bullish vs. Bearish: Comparison between bullish and bearish markets
Bullish and bearish markets are names referring to marketing conditions at certain periods of time. The terms can be used in various financial markets, whether its stocks, property, bonds or cryptocurrency, to specify whether markets are in a downtrend or uptrend trajectory through the observation of overall price and value.
Investors have been found to employ both technical and fundamental analysis to study the state of markets for their suitable entry-exit points.
Many of you may be wondering, what are the signals for bullish-bearish markets and what are its indicators? Well worry no more, for we will look into this area together today in this writing.
What are Bullish Markets?
Bullish markets are periods wherein asset prices are valued higher, often causing confidence on the investors’ side, as well as profit taking in this period as well. Bullish markets are analyzed by the time frame of days, months, years and such.
However, price increases are always followed by eventual decreases, even in bearish markets, wherein price decreases tend to be less impactful.
Bearish markets are periods of price stagnation or decrease from previous high points and still show indications of continuous downtrend movements. Investors have often been found to sell in this period to cut losses or swap for less volatile options of investment, like stablecoins.
Though there can be significant decreases in volume and price, bearish markets are still very active as large numbers of investors have also been found to make use of the downtrend market through thorough research and understanding of trends.
What’s the difference between bullish and bearish markets?
When comparing the overall economic state of both periods, bullish markets are the equivalent to festive seasons, wherein demand is increased, as well as volume. However, in bearish markets, the economic standpoint can be seen as stagnant due to numerous factors, causing both prices and volumes to decrease.
Nonetheless, price volatility is visible in both market periods, in accordance with certain market factors at the time. This indicates the particular state, time frame and price adjustment markets can take in certain periods.
Understanding the matter of bullish-bearish markets can help traders analyze the suitability of investment in certain situations, while also developing a better understanding of market cycles.
Regardless of the market state, with adequate knowledge and research, investors can still discover underlying opportunities. The writing above is for educational purposes, not financial advice.