By reading the article “What Is A Crypto Bull Run?” published in Adaas Investment Magazine, you will get acquainted with the bullish and bearish market terms and what are strategies of each market to make a profit in general. This level of familiarity can be enough for you to invest in the cryptocurrency market.
Also, you can read this article with better user-friendly design on: https://adaascapital.com/what-is-a-crypto-bull-run/
What Is The Bull Run?
In financial markets, when the market experiences an uptrend, it is called the Bullish Market, and when the market is downtrading, it is called the Bearish Market. The term Bull Run also refers to a time when investors in a bullish market are making a great profit.
What Is The Importance Of Bull Run In The Cryptocurrency Market?
Given the nature of investing which is buying at a low price and making a profit by selling that asset at a price higher than the purchase price, it is easy to see how important a bullish market is for investors. Another natural behavior of financial markets is downtrends based on different reasons. These downtrends increase the value of the uptrend for investors.
When Does A Bull Run End?
Professional investors are always aware that no uptrend will continue forever, so they carefully consider all the signs of the beginning of a downtrend, such as the formation of a death cross pattern.
Unpredictable events such as the outbreak of Covid-19 or the recession of part of the industry due to unforeseen bankruptcies as well as adverse economic conditions can be a warning sign of the beginning of a downward trend in prices in financial markets.
What Is A Bearish Market?
An upward trend in price occurs when demand for an asset increases. Conversely, when the demand for an asset decreases and the supply increases at the same time, the price of the asset decreases and forms a bearish market.
No comments:
Post a Comment