Bull Market is one on the rise or expected to rise characterized by 20% increase.
Bear Market is the opposite of a Bull market, with dropping prices of at least 20% with about two months’ duration.
These are terms applied to anything that is traded.
And the names of the markets have been given according to the animal’s aggressive behavior.
As a bull strikes upwards with his horns and a bear claws down its prey.
A bull market means optimist investors, strongly positive.
This is considered a greedy market, where investors want more and more of a stock, coin, token or commodity.
Bull markets happen when more people want to buy than sell. Vice versa for bear markets.
A bear market means pessimist investors, aggressively negative.
This is considered a fearful market. Fear breads fear in a powerful way in humans, and eventually many investors start to drop out, anticipating great losses.
Experienced investors do not allow themselves to be driven by the market´s emotions.
Instead, they use the market´s greed and fear in their favor.
By selling when it is bullish because prices are high then, and buying when it is bearish when everyone else is dropping out because prices are lower then.
A bear-market is not to be confused with a correction.
A correction is a temporary reverse movement of at least 10% of an asset.
1st Market shows high prices with great fear from investors who start to drop out and taking in profits.
2nd Prices start to fall rapidly and sharply.
3rd Speculators start to enter the market raising prices and volume.
4th Prices keep dropping but slowly and low prices attracts the experienced investors.