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What does bullish or bearish mean in the crypto market? When discussing crypto markets, both mainstream and cryptocurrencies, “bullish” and “bearish” often pop up in headlines and conversations, although such usage often depends on opinion. financial knowledge and experience. What do the two terms mean?
Rise and fall refer to market sentiment, generally seen or expressed by an individual. If someone is optimistic, it means they expect the price of an asset or an asset class to increase. Conversely, bearish refers to negative price expectations. Someone holding an uptrend is sometimes called a "bull" or "bull" if a market group or faction is bullish. Therefore, the “bears” predict a decrease in asset values.
Why are bulls and bears the animals of choice for such a term? The answer may lie in how the two animals attack their prey. The bulls attack from the bottom up, driving their horns through the target. Bears, on the other hand, start from above and attack downwards with their weight and arms.
An explanation of the term's roots, however, is only one possibility, according to Investopedia. "The actual origin of these manifestations is unclear." The conflict could also be from bearskin trades long ago.
The Oxford Learner's Dictionary describes an uptrend as: "feeling confident and positive about the future" or "caused or associated with an increase in stock prices". Bearish means: "indicating or expecting a decrease in stock prices".
A desire for bearishness?
The desire to rise and fall depends on several factors. In general, traders can worry less about whether a market or asset goes up or down, as long as they can trade both ways (called buying and selling). Traders typically enter and exit positions more often than investors, using shorter time periods for their games.
Rather than expecting prices to rise rather than fall, or vice versa, traders may be more concerned with whether they are correct in their bullish or bearish judgment, profiting from trades as long as they correctly identify in a certain direction. assets, depending on the trading strategies used. However, the strategy, talent, or inclination of some traders may favor one market condition over another.
On the other hand, investors typically buy positions and hold them for longer periods of time, taking advantage of rising prices, so they may reasonably want the market to rally. An investor can take a long-short position or sell an asset if they have a bearish view on an asset, despite the maximum that someone can do (in most cases). ) is 100% profit he runs to absolute top and increases assets to 0. On the other hand, the asset can practically increase in price infinitely, giving returns that may be more than 100%.
bullish or bearish mean in the crypto market
Crypto-specifically, why would any investor or trader want the price of Bitcoin (BTC) or any altcoin to drop, even if they are generally optimistic about the industry? Cryptocurrency industry? One of the reasons could be their location. If a trader is bearish on BTC - expecting the price to be lower - they can enter a short BTC position and therefore logically want their price to fall, as they would profit from a decline in assets.
Traders can even short-term bearish and long-term bullish or vice versa. For example, they might expect the Bitcoin price to bounce back over a period of days or weeks, but eventually rally and return to an uptrend for several months.
Investors or traders may also have a short-term bearish and bullish long-term view, wanting lower prices in the short term in order to purchase certain assets at relatively cheaper prices. Conversely, a market participant may have a short-term bullish view with a long-term bearish outlook. They may think the price will rise due to hype or other factors, so they may belong or long in the short term, while in the end expect to sell their positions because they think the market is a bubble or something like that.
It is important to note that in the market, short-term and long-term determinations can be subjective.
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An overview of what can cause an up or downtrend in the crypto market
An individual's bullish or bearish opinion can be based on a variety of factors, such as charts, news, and general knowledge. Market participants may believe that Bitcoin or an altcoin will decline in price over a period of time-based on certain conditions or chart patterns.
They may also take a bearish view on long-term assets following negative news, such as a specific regulatory action by the government. One might take a bullish view for a time frame based on an upcoming event, such as the launch of the Chicago Mercantile Exchange Bitcoin futures in 2017.
People can also get an overall view of a down or uptrend in an asset in general. MicroStrategy CEO Michael Saylor sees Bitcoin as a new way to store value. Meanwhile, gold advocate Peter Schiff sees Bitcoin as a bubble.
So there are many factors that affect different parts of an uptrend and a downtrend. Time frames, outlooks, opinions, and events can all influence a person's view of an asset or asset class. Ultimately, each individual has to come to their own conclusions about what they think. Most traders trust the No 1 Crypto Market Cap analysis website
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