A bull market is a situation where the prices of assets are on a continuous rise or are expected to rise. In a standards market, the prices of all assets are often rising and falling continuously. But, in bull markets, the prices of most of the assets are taking a constant rise that could last months or years.
Assets must show a 20% price gain for two months or more to determine a bull market. Bulls often arise just after bears, when the market news is increasingly becoming positive.
Bull markets often occur when the economy is healthy and the market conditions are friendly. For instance, we might see bull markets when oil prices reduce or a vast collection of good news available. Bull markets occur since the investors have high optimism.
Bull markets are often characterized with the following;
- Economic growth and financial expansion
- High investor confidence and more crypto asses purchase
- Optimism from investors and financial analysts
How to Trade in Bull Markets
Of course, the primary intention of every trader is to benefit well from every market situation. Like in bears, bull markets give vast options for making prices grains. Here is how you can benefit from bull markets;
- The best investment strategy for bull marketing is HODLing. As an investor, you need to hold your assets for long as you wait for the coins to reach their peak prices.
- You also need to purchase coins, especially when they seem to be reversing from a bear situation.
- As an investor, you need to focus more on increasing your assets. Keep the asset on hold as long as the prices of crypto are o a rise.
- Also, target any price plunges that may occur during this entire time. Buy assets during the price drops, and wait for the prices to peak.
- Swing trading fully. Swing trading involves selling shorts to take advantage of ongoing price trends.