In this technological era, crypto tokens have become a principal instrument of the digital financial market. Moreover, you will get live customer support. Even ordinary and small investors are buying these crypto tokens to create a source of their side-earning. However, before investing in these crypto tokens, you should have some prior knowledge about them here and the related financial market.
If you plan to become a bitcoin investor, you must clearly understand its bullish and bearish situation. Then, it will help you analyze the current market situation and make an appropriate investment decision. These crypto tokens are created and maintained by a technology called a blockchain. In simple terms, these tokens can be used in place of any fiat currency, commodity or other type of goods.
They are cryptocurrency products whose value fluctuates and is determined by the market demand. Many exchange platforms provide a trading platform for the buying and selling of these tokens in exchange for fiat currencies like USD, EUR etc. and some other cryptocurrencies like Bitcoin.
What is a crypto bull market?
A crypto bull market is a market condition where assets are appreciating rapidly in value. In other words, it is when most asset prices and values seem to be constantly rising throughout the year. If you look at the records then, you will observe that financial experts have observed four different types of bull markets to date :
1. Narrow range bull market: This is the initial stage of any bull run. The demand for an asset keeps increasing without any substantial increase in its price value. As a result, it has less volatility and less fluctuation in its prices.
2. Rising range bull market: In this market condition, the price of an asset is constantly increasing with more volatility on a substantial basis.
3. Top of the bull market: It is the third stage of any bull run where the prices of an asset will experience significant gains, and then it will reach a peak. The prices will remain stagnant for some time in this stage and then decline slowly until it reaches the last stage of bearish market conditions.
3. Declining range bull market: In this market condition, the prices are declining with less volatility and limited fluctuation in its prices.
4. Last stage of a bull market: It is the fourth stage of any bull run where an asset is experiencing a significant and rapid decline from its peak values.
What is a crypto bear market?
A crypto bear market, in simple terms, is a period in which the prices decrease rapidly and continuously with fluctuation in the values. Now there are four different types of bear markets:
1. Narrow range bear market: This is a market condition when the demand for an asset remains stable, but there is comparatively less volume of transactions or investment than other bull market stages mentioned above.
2. Falling range bear market: In this market condition, the demand for an asset continuously falls with a steady decrease in its volume and value.
3. Bottom of the bear market: This is the last stage of a bear market where a particular asset is experiencing a substantial decline from its peak values.
4. Last stage of a bear market: After experiencing multiple stages of bull and bear markets, an asset has reached its bottom lines and hence begins to increase in volume and prices once again.
Bitcoin trading market:
The trading market for bitcoin is best known as the cryptocurrency market. The leading cryptocurrency for bitcoin is called bitcoin, created using blockchain technology. It is a decentralized digital cash system that uses cryptography to encrypt data and secure digital transactions.
In simple terms, it can be described as a digital currency whose unit of value is a bitcoin token. One such example of this is the cryptocurrency market. Bitcoin has become the most popular crypto token and is already known as the most popular token to date.
Effect on the trading market:
In the initial stage of a crypto bull market, the demand is comparatively low; hence, these tokens’ prices are stabilizing. In the rising range stage, it continuously increases and reaches a peak with high volatility in its price values. After reaching this peak, the price values will decline steadily with lesser volatility in their value.
After reaching its bottom line, it will increase again until it reaches the starting point of a new Bull Run cycle. If you look at the above chart of bitcoin, then you can easily understand how there were several bull runs and bear runs in between until it reached its all-time high value near $20,000 per coin.