Bull and Bear in Crypto: How to Trade in Any Market

Everyone who starts investing in cryptocurrency will sooner or later face two opposite market conditions. They determine not only the profitability of the portfolio but also the psychological state of traders. Let’s understand how a bull run works in crypto, why a bear trend is not a verdict at all, and how to profit in any conditions.

Bear Attack: What Happens During Price Drops

A bear market (bear market) is a phase when investors massively sell off assets. The value of cryptocurrencies drops by 20% or more from historical peaks. Panic, uncertainty, and fear of further losses become the main emotions among market participants.

Notably, in 2018, Bitcoin went from $20 000 to $3 000—one of the most vivid examples of how quickly sentiment can change. During such periods, trading volumes decline, liquidity decreases, and the news background becomes overwhelmingly negative: regulatory bans, economic crises, and losses of major investors are discussed.

However, bear periods are not only about losses. Experienced traders use these moments for short positions (shorting), transfer capital into stablecoins, and diversify their portfolios. Additionally, a bear market creates excellent conditions to buy assets at low prices before the next bull cycle.

Bull Run in Crypto: When Optimism Rules the Market

The opposite scenario—a bull market (bull market)—is characterized by sustained price growth, influx of new investors, and high trading volumes. Cryptocurrencies appreciate by 20% or more during such times, market capitalization increases, and interest in digital assets reaches new heights.

A classic example is the 2020–2021 period, when Bitcoin grew from $10 000 to $69 000. This crypto bull run was supported by growing institutional investor interest, development of blockchain projects, and positive news from the ecosystem. Confidence prevailed in the market, trading was active, and every small correction was seen as an opportunity to buy.

During a bull market, traders employ long-term investment strategies, apply the HODL approach (holding assets regardless of short-term fluctuations), and trade trend-wise—buying on local dips and selling at growth peaks.

Table: Key Differences Between the Two Phases

Frequently Asked Questions About Market Phases

How long do these cycles last? Bull markets typically last 1–3 years, bear markets from several months up to 1.5–2 years. Duration depends on macroeconomic conditions and news background.

How to identify the start of a new cycle? Market reversal can be detected through technical analysis of charts, changes in trading volumes, appearance of positive (or negative) news, and shifts in cryptocurrency regulation.

Is it possible to make money in a bear market? Absolutely. Shorting, investing in stablecoins, diversification, and selectively buying promising projects at low prices—all these approaches generate profit.

When to Expect a Trend Reversal?

It’s impossible to predict the exact moment of reversal, but there are reliable signals. A bull market begins with increased interest in cryptocurrencies, trend reversal on charts after a long decline, and institutional adoption of digital assets. A bear market is triggered by a sharp drop after prolonged growth, panic selling, and intensified regulatory pressure.

How to Profit Regardless of the Direction?

In a rising market, use long-term investing, the HODL strategy, and trend trading. In a falling market—take short positions, transfer funds into stablecoins, and diversify risk across multiple assets.

The main rule: analyze the market, do not rely solely on emotions, apply proven strategies, and always remember the importance of diversification. Only then can you minimize losses and maximize profits regardless of which phase dominates the crypto market.