Bulls and Bears in the Markets

By Aleksandra Wilson
2 min read July 27, 2021

Bull and bear concepts

When it comes to both the crypto and other markets, the terms bulls and bears or “bearish” and “bullish” are used a lot. However, the use of it usually depends on the experience. They indicate the tendency to go high or low of a certain asset or market.

What do the terms bulls and bears refer to?

These terms are used to describe the general sentiment. When we talk about a bullish tendency, it means the rise in the price of an asset is expected. On the other hand, the term bearish points to negative expectations of the price. 

bulls and bears markets bullish bearish

Why are the bulls and bears the animals used for this terminology?

One theory is based on the way both animals approach their prey; while bulls attack by throwing their horns in an ascending movement, bears attack on the way down, starting from a higher position. Although, where these expressions come from is not clear.

How can this be applied to the markets?

Usually, traders care more about being able to do trading in both directions than whether an asset or market is optimistic or pessimistic, which indicates that neither concept is good or bad. It is more important for traders to make sure they are right in their assumption of something being bearish or bullish in order to profit on their trades. They base their conclusions on the hype, news or other factors. Traders might be assuming that the prices on a certain asset or market will go up or down to decide the position they’ll take to accomplish their goals and eventually sell it while obtaining a profit.

bullish and bearish market
bulls and bears

Conclusion

Many factors can influence a person’s view, such as opinions, events, and timeframes, still in the end each one must come to their own conclusion regarding what they think, and what’s most important, to have clear that the goal is not to have a bullish or bearish approach, but to make sure that whichever, it’s aligned with our goals.

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