Traders have long been divided into "bulls" and "bears." The former push prices upward, while the latter profit from the decline in asset value. A bullish trend signifies a significant upward movement of an asset.

Traders have long been divided into «bulls» and «bears». The former push prices upward, while the latter profit from the decline in asset value. The emergence of bulls is considered positive, and the following terms are distinguished:

These concepts originated in the stock market and are fully applicable to crypto assets.

What Does a Trend Mean in Cryptocurrency Trading?

Bulls and bears operate in opposite directions — this fact always remains unchanged. Manifestations of a bull market are determined based on trends identified by traders. A bullish trend can be characterized by the following features:

It is worth noting that the term "trend" is sometimes referred to as a «tendency», and "bullish" can be replaced with «upward», «rising», or «increasing». These terms are synonyms.

How to Act During a Bullish Trend?

The basic rule is — observe other market participants. If most are making purchases, you can join them. The key is to identify the trend and follow it. Use trend lines and technical indicators to identify a bullish trend. It is important not to miss the moment when the trend changes and to close your trades in time, securing your profit.

A trader should consider the high volatility of crypto assets as well as the influence of news events. Negative news can sharply collapse an asset's price, ending the «bullish» phase of growth.