update 19 August 2021

A Comprehensive Guide on Crypto Bear And Bull Markets

If you are new to investing in the crypto market, then you’ve likely heard people talking about crypto bull/bear markets or crypto whales, but you might not be sure what they mean.

The truth is that it’s possible to make money in both bull and bear markets, but there are different strategies for each. That said, investors should be cautious when putting their money into cryptocurrency markets no matter what type of investing environment we are experiencing because there are serious pitfalls to avoid.

In this guide, we’ll go over precisely what bears and bulls mean for your investments and examine some strategies that you can use in both markets.

The Bears

When we talk about a cryptocurrency bear market, we refer to a market situation defined by caution and pessimism during which traders are much more likely to sell than buy.

An excellent example of this is Bitcoin‘s downturn in 2018. At the beginning of 2018, BTC prices started plummeting, which considerably shook buyer confidence. After prices began to fall, investors holding BTC panicked and sold their investments, putting a great deal of pressure on the market as a whole.

While owning a losing investment can make anyone depressed, it does present an exciting opportunity. Bearish crypto markets tend to reduce the prices of every project since they all follow BTC very closely.

This means that investors who are willing to wait out this depression could find themselves in a perfect position when the bear cycle decides to recede. For value investors, crashing cryptomarkets can present a brilliant opportunity.

However, investors looking to take advantage of these prices should spend a good deal of time researching their chosen digital assets. If you can find a decent deal on a token or coin that you think has a substantial project and use case, then you have an excellent chance to establish a position that you otherwise wouldn’t have had access to in different market conditions.

As an investor, it’s vital not to mix up a bear market with a price correction in the charts. A bear market is a sustained period characterized by noticeable downward movements. A price correction takes place when the price of an overvalued digital currency corrects itself.

Bull Markets

Typically a bull market is one defined by optimism and investor confidence. If the market trend is up, then we’re witnessing a bull market.

Cryptocurrency investors experienced this toward the end of 2017, and they saw many of their investments skyrocketing overnight. A lot of new money entered the cryptocurrency space, and that pumped a ton of money into many projects.

The massive gains brought about this interest bitcoin experienced, attracting the mainstream media’s attention and dragging in those who had never heard of or at least had never been interested in cryptocurrency before.

Investors who are coming into space during a bull run should be extremely cautious. What goes up must come down, and it’s easy to buy in at the top when the bulls are running. While this can feel like a great decision at the time, you could be setting yourself up for a disaster a couple of months down the road.

When choosing your investments, you should carefully analyze each asset to ensure it is not trading at an inflated and unstable price.

Preparing Your Crypto Portfolio For a Bear Market

If it seems that everything is crashing down in the markets and you’re afraid that a bear market may be imminent, then it may be in your best interest to reduce many of your positions. Positions in less proven digital currencies may especially then be highly inflated. That said, even top coins like Bitcoin and Ethereum can experience massive losses in bear markets.

Your best option would be to move all of your crypto holdings to stablecoins such as tether (USDT) and Circle’s USD Coin (USDC). Stablecoins are a special kind of digital asset that is meant to be stable, valued equally to a real-world asset, such as the U.S dollar.

This gives a stablecoin two major advantages: a lack of volatility – which is a problem for even some top cryptos such as Ethereum – and a certain measure of trust. Moreover, being a virtual currency rather than fiat, stablecoins are ideal and quick for inter-cryptocurrency trading, which would allow you to quickly buy BTC other top tokens once crypto markets start recovering.

Numerous quality altcoins will often be available for rock bottom prices during a bear market. You could likely double or even triple the number of digital assets in your portfolio by taking profits at the right time and then buying back in at a later date.

Preparing Your Portfolio During the Bulls

If the bleeding in your investments seems to have stopped, and you can see volume starting to pump back into different projects, then it might be time for the bear market to go into hibernation. It’s often tough to identify the bottom, but if the market has been chopped down at the knees, it’s likely a good time to start accumulating.

Keep in mind that investors will likely be much pickier when buyer confidence and trading volume returns if they have been burned previously. Be careful only to place your investment in substantial projects with promising and practical use cases. This is a great time to get in on projects which may have been too costly for you to invest in before.

As always, it’s essential to do your research, and you should never invest more money than you can afford to lose. Cryptocurrencies are still very new as far as financial instruments are concerned, and they are incredibly volatile. It’s essential to diversify your assets to secure your financial future.

Bitcoin Could Be On the Verge of a Full-blown Bull Run

Since the $3,700 low witnessed on March 12th, which has been dubbed Black Thursday, Bitcoin has surged higher, rallying as high as $7,470 in an inspiring run. While impressive, the king crypto is not yet in a full-blown bull run, but analysts are gaining confidence a bull run is near.

Glassnode, a leading cryptocurrency data firm, suggested on April 15th, 2020, that according to one of its proprietary indicators that accurately timed Bitcoin’s market tops, a full-blown “bullish trend reversal” may soon be confirmed.

Although Glassnode’s indicators do not explicitly point to the commencement of a BTC bull market just yet, many well-known crypto analysts are convinced that this period of the market cycle is imminent.

Speaking to Bloomberg, Mike Novogratz — CEO of Galaxy Digital and a former Goldman Sachs partner — remarked that he remains long on gold and Bitcoin, citing monetary policies being implemented to combat the coronavirus that will result in printing money en-masse.

Novogratz also signaled that he’s bullish on Bitcoin because he has noted it sees strong adoption from institutional players, specifically pointing towards high-net-worth individuals and hedge funds entering the industry.


‘Whales’ can be defined as persons who hold a significant amount of a specific digital token that when they make a move to buy or sell, they don’t just make a splash in the market – they make waves!

These waves can be large enough to have a significant impact on the whole market. For example, as crypto markets crashed on March 12th, 2020, Whale Alert detected two consecutive transactions in BTC worth about $21.7M. The transfer was made between crypto wallets of Binance, the largest exchange on the crypto space. It later turned out that crypto whales were pushing the BTC price down to $6,000 to buy the dip before the next bull market broke out.

An example of a whale could be Vitalik Buterin, Founder of Ethereum, who currently holds about 350,000 ETH. Since they have abundant crypto holdings and the crypto markets’ unregulated nature, whales can move prices in their desired direction.

Many cryptocurrency traders pay close attention to whales and watch how, when, and where they trade. This way, they can go along for the ride and profit alongside the whale – or avoid going against the whale, as that would result in losses.

It’s not all that easy or straightforward to spot a whale. You need to look out for abnormal changes in prices and volatility during periods expected to be quiet and stable.

Final Thoughts

If you’re aiming to become a prosperous crypto investor, you’ll probably need to be able to respond to bear and bull markets in the right way and, where possible, align your trading action with those of popular whales. As a general rule of thumb:

  • Buy the dips in a bull market.
  • Sell the rips in a bear market.
  • Do both in a stagnant market.

Fully understanding what a bull or bear market means for crypto prices could be the difference between making substantial profits and suffering significant losses.

price change

More importantly, growing familiar with the terms frequently used by the crypto community will allow you to keep up with more in-depth scrutiny of behavioral tendencies and price fluctuations.

More posts

Can You Gamble with Crypto in Las Vegas

Las Vegas is best known for gambling with an enormous concentration of world-class casinos and hotels. This entertainment hub situated in the State of Nevada attracts thousands of tourists across the world to experience the glamour and gambling life. Following the massive growth of Bitcoin in recent years, Las Vegas has increasingly embraced it, with widespread use, especially as a mode of payment for dining, rent, cars, etc. Over fifty businesses in Las Vegas, Nevada accept cryptocurrency as a mode…

Cases of the Longest Bearish Price Trends in the Crypto Market

The crypto world's decade-long existence has not been flawless. Like in any other market, there is always a bear trend that leads to massive losses. The 2008 market crash is one of the biggest bear markets in the financial world, and others occurred in the following years.  Crypto has seen cases of long market crashes as well, some lasting over a year. This guide will be looking into 5 of the must-know crypto market crashes. Furthermore, it will highlight the…

Who will enter the CryptoSphere first: Amazon or Facebook?

Amazon and Facebook are some of the biggest technology companies in the world and have long been the main drivers of tech innovation across the globe. These two companies have substantially impacted billions of internet users, whether it's through Facebook's pioneering and massively successful social media platform or Amazon’s enormous e-commerce platform and cloud computing services.  Both Amazon and Facebook have made several steps in the cryptosphere pushing for the adoption of cryptocurrencies and blockchain technology. In fact, Facebook and…

What Really Happens When Swapping Cryptos?

The process of swapping cryptocurrencies can be somewhat complex. Sometimes, you may end up lacking the exchange assets you need. For instance, you may want to exchange BTC for ZIL. Generally, there are very few exchanges that support direct BTC to ZIL exchanges. Therefore, in many scenarios, an individual will have to find a BTC trading pair. Exchange the BTC to another pair connected to ZIL, then complete by exchanging the second asset to Zil. Generally, following the whole exchange…

Could Brexit be the Underlying Reason for Developing The Digital Euro

After the election in December 2019, the British Parliament decided to ratify the withdrawal from the European Union. Factors that influenced Brexit included immigration, sovereignty, anti-establishment politics, among others. Could Brexit have influenced the development of the digital Euro? Read on to find out as we break down factors that led to the development of digital currency. The Growth of Digital Assets The concept of digital assets is not novel; its penetration and influence have left no stone unturned. The…

What Are Crypto Validators and How do They Work?

Crypto Validators are new "payment processors" in decentralized networks, and as such, they produce blockchain rewards. It sounds simple, doesn’t it? However, the definition of validators in crypto is much more complex than that. Also, the role of a validator may change depending on the consensus mechanism that each blockchain uses. In this guide to validators in blockchain, we take a closer look at this entity and its indispensable role. Furthermore, we analyze four validator use cases in different blockchains…

How Many ETH Will Burn After the London Fork?

Since its launch in July 2015, Ethereum has grown exponentially to be the second leading cryptocurrency in market value after Bitcoin. The platform’s growth has primarily been attributed to its smart contract feature, which powers the deployment of a wide range of applications, including oracles, decentralized finance (DeFi), decentralized exchanges (DApps), marketplaces, crypto-collectibles (NFTs), and developer tools.  Despite its growth, Ethereum faces numerous challenges that hinder its usability. The scalability challenge is one of the biggest ones that Ethereum faces. The current state…

The Impact of Adoption of Cryptocurrencies on E-commerce Business

E-commerce is the short form of electronic commerce. It is the buying and selling of merchandise over the internet networks. It also involves the transfer of funds and the keeping of records to certify the transactions made. E-commerce is of three types; business-to-consumer (B2C), business-to-business (B2B), and business-to-government (B2G). The main reason for using cryptocurrencies in e-commerce is to get rid of third parties that control the transactions. This relationship can make online shopping much easier and safer since blockchain technology that backs up cryptocurrencies is…

What it Means to Make Bitcoin a Legal Tender

June 9, 2021, marks the first move that would make history in Bitcoin's timeline. El Salvador passed a bill where 62 of 84 congressional voters would make Bitcoin a legal tender. Fast forward to September 7, and El Salvador became the first country to make Bitcoin a legal tender. In this article, we shall look into what it means for Bitcoin to be a legal tender in detail; What is Legal Tender? "This note is legal tender for all debts, public and…

The Correlation Between Blockchain Activity and Transaction Fees

Miners and validators are essential cogs in any crypto project. They're the ones who process transactions on a blockchain (BC) activity. For their efforts, crypto projects compensate them for their efforts from transaction fees. A transaction is only valid when it has undergone validation. The process ends in the validators adding it to the BC. Mining consumes a lot of computing power. As such, it's an energy-intensive exercise. The motivation for the miners is the block reward that consists of…