What is a Bull Market And Are We Currently In One?
You keep hearing the term everywhere. Everyone hopes and believes a new bull market is underway. But what does the term stand for?
What is a bull market?
A bull market stands for a positive (rising or expected to rise) condition in a financial market.
For example, all throughout 2017, Bitcoin was in a “bull market”. During that time its price increased over a long period of time without any significant signs that proved otherwise.
On the contrary, a weekly/biweekly price increase such as the one Bitcoin saw in February of 2018, is simply a local high or a temporary price recovery in a general market downtrend (bear market).
When does a bull market occur?
While the term is mostly used to describe the condition of the stock market, a bull market can be applied to anything that is tradable. And that includes cryptocurrencies as well.
Because the price of coins and tokens rises and falls both in the short term (market volatility) and in the long term (e.g. Bitcoin), a “bull market” mostly refers to longer periods of positive price action, ranging from months to years.