## How Does a Bull Run Rewrite Market Patterns? Analyzing the Rise Trends from Data

In the investment field, a **bull run** represents a phase where market prices continue to rise. The historical statistics from economists are quite interesting: from 1929 to 2014, the United States experienced 25 bull runs and 25 bear markets. On average, each bear market saw a decline of about -35%, while the average rise during a bull run reached +104%. This set of comparative data reveals an interesting phenomenon— the strength of market uptrends is often more robust.

### Why is the cryptocurrency bull run so intense?

Compared to traditional financial markets, the cryptocurrency market is smaller, which directly leads to higher volatility. In a bull run environment, the performance of crypto assets is particularly exaggerated—it's not uncommon for prices to rise by 40% within 1 to 2 days. In traditional definitions, an asset price is considered to have entered a bull run stage only after rising more than 20% from its low.

Why will the bull run of cryptocurrencies last longer and rise more sharply? This is closely related to the emotions of market participants. When investors are confident about the future, they continue to buy, creating a positive feedback loop.

How to identify bull run signals? ###

The market does not always clearly exhibit the characteristics of a bull run. Traders and analysts often rely on technical tools to capture trend signals:

- **Moving Average (MA)** is used to smooth price fluctuations and identify the direction of long-term trends.
- **MACD** (Moving Average Convergence Divergence) helps determine changes in momentum
- **RSI** (Relative Strength Index) measures the strength of price rises.
- **OBV** (On-Balance Volume) combines volume to confirm trends.

These indicators are particularly important when analyzing the cryptocurrency market, as the crypto market is influenced by various factors—from macroeconomic indicators to policy changes, and to the rapid shifts in market sentiment.

### Why are bear markets always more frightening?

The opposite of a bull run is a bear market, which occurs when investor confidence declines. Price declines can trigger negative emotions, and traders tend to sell off assets more aggressively, further accelerating the decline. This phenomenon is referred to as "capitulation" in economics—market participants give up resistance, and a large number of liquidations lead to a downward spiral in prices.

This explains why, although the average decline in a bear market is only -35%, the psychological impact is far greater than the effects of a bull run. In the cryptocurrency space, this psychological effect is even more pronounced.

### Summary: The market dynamics of bull runs and bear markets

In both traditional and cryptocurrency markets, a **bull run** follows the same principles—investor optimism drives prices up, with technical and funding aspects reinforcing each other. Historical data from 1929 shows that in the long term, the profit potential of a bull run far exceeds the declines of a bear market, which is why investors continually return to the market.