Bull market
Also called: bull run · bullish market
Definition
A bull market is a sustained period when prices rise broadly and investor confidence is high, commonly described as a gain of 20 percent or more from a recent low.
This entry is shown in English.
How Bull market works
The term comes from the way a bull attacks, thrusting its horns upward. In crypto, bull markets tend to be faster and more extreme than in stocks. Bitcoin often leads, and altcoins and memecoins frequently follow with bigger moves later in the cycle.
Typical signs include rising prices on higher trading volume, new all-time highs, positive funding rates on perpetual futures, record exchange sign-ups and heavy social media attention. Sentiment gauges such as the Fear and Greed Index often sit in the greed zone for long stretches.
Bull markets are not straight lines. Pullbacks of 20 to 30 percent inside a crypto bull market have been common, and leverage that looks safe while prices rise can be wiped out in one sharp correction. Nobody can reliably tell in real time whether a bull market is starting or ending, so a written plan for entries, exits and position size is more useful than predictions.
Example
Suppose a coin rises from 20 to 50 USDT over six months, a 150 percent gain. Along the way it drops from 40 to 30 USDT in a week, a 25 percent pullback, before recovering. A trader who bought at 40 with 5x leverage and isolated margin would likely have been liquidated during that dip, even though the coin later reached 50. A spot holder who sized the position modestly could simply wait it out.
Common mistakes
- Increasing leverage as prices rise because recent trades worked.
- Assuming every dip in a bull market will recover quickly.
- Buying coins only because they are trending on social media, late in a big move.
Learn and practise
FAQ
How long does a crypto bull market last?
There is no fixed length. Past crypto bull markets have lasted from several months to more than a year, and every cycle has had different drivers.
What does bullish mean?
Bullish means expecting prices to rise. A trader who is bullish on BTC thinks its price will go up.
What is the opposite of a bull market?
A bear market, a sustained period of falling prices and weak sentiment.