## Bull Market in Crypto: When Investors Profit

The phases of the crypto market determine the fate of every trader's portfolio. A bull market and a bear market are two opposite forces that require completely different trading approaches.

### Structure of Bull Phases: What Happens in the Market

When talking about a bull market in crypto, it refers to a period when prices are rising, and investors are filled with optimism. During such times, activity on exchanges skyrockets: trading volumes increase, market capitalization gains momentum, and newcomers actively enter the crypto ecosystem.

**What characterizes this phase:**

Prices move up by at least 20%, often much more. Positive news background (regulatory approval, development of blockchain projects, corporate investments) fuels optimism. Trading platforms experience a surge of newcomers who are afraid of missing the rally. Liquidity is at its maximum — buying or selling can be done without issues.

A classic example: 2020–2021, when Bitcoin soared from $10 000 to $69 000. It was one of the strongest bull periods, where every third newcomer dreamed of making a profit from crypto.

### What does a bear market in crypto look like

The opposite of a bull market is a bear market. Here, fear and pessimism dominate. Investors panic, actively sell off assets, fearing to lose even more. Prices drop by 20% or more, trading volumes decline, and interest in crypto suddenly disappears.

**Signals of a bearish period:**

News becomes disastrous: regulatory bans, economic crises, scandals on major platforms. Trading volumes fall — the market seems to be dying out. Panic selling occurs wave after wave. In 2018, Bitcoin fell from $20 000 to $3 000 — a classic example of a crash.

### How to profit in different phases

**Bull market in crypto prefers:**

Long-term investments — simply buy and wait for several months for growth. HODL strategy (buy and hold, don’t panic). Trend trading — find local pullbacks, buy, then sell at peaks. This is the most profitable period for beginners.

**Bear market requires cunning:**

Shorting — sell now, buy back cheaper later. Moving capital into stablecoins (USDT, USDC) — protect yourself from decline. Diversification — don’t keep all eggs in one basket.

### How to determine when a new phase begins

Exact prediction is impossible, but there are signals:

**For the start of a bull period:** Trading volumes begin to grow after a long silence. Charts show a trend reversal — from decline to growth. Major players (institutions, funds) inject money. Positive news background becomes systemic.

**For the start of a bear period:** After a prolonged rise, prices suddenly crash. Waves of panic selling roll in one after another. Regulators tighten rules. Media fills with negativity.

### Summary

A bull market in crypto is an opportunity to profit from growth and maximize gains. A bear market requires protection and caution. Success in crypto depends not on predicting the future, but on adapting to the current phase. Analyze data, diversify your portfolio, and avoid emotional decisions — this is the foundation for survival in any market.