When it comes to markets, both dominant and bullish and bearish cryptocurrencies often appear in headlines and conversations, although this usage is usually based on knowledge and financial experience. What do these two terms mean?

An upward trend and a downward trend indicate market sentiment as a whole or by individuals. If someone is optimistic, it means that they expect the price of an asset or asset class to rise. On the contrary, a bearish trend indicates negative price expectations. A person with an upward bias is sometimes called “ox” or “ox” if a group or faction in the market is optimistic. Therefore, the “bears” expect a decline in asset prices.

Why do we call oxen and bears our favorite animals under such conditions? Perhaps the answer lies in how these two animals attack their prey. The bulls attack upwards and paw the target with the horns upwards. On the other hand, bears start high and attack downward with weight and arms.

However, such an explanation of terminological roots is only one possibility, according to Investopedia. “The true origin of these terms is unclear.” The richness can also come from a long-term relationship with bearskin.

The Oxford Learner Dictionary describes an upward trend as “a sense of confidence and confidence in the future” or “evokes or is associated with an increase in stock prices.” Fall means: “to show or expect a decline in stock prices.”

Want to go down?
Rising and falling desires depend on a number of factors. In general, traders may not care if a market or asset is bullish or bearish if they can trade both directions (called buying and selling). Traders often go in and out of positions more often than investors, and use shorter time horizons to play.

Instead of wanting to go on a dip or vice versa, traders may be more interested in whether they are correct in their bullish or bearish rating, and take advantage of trades if they know exactly which direction the asset is going. , depending on the trading strategies used. However, strategies, talents or preferences of some traders may prefer certain market conditions over others.

On the other hand, investors usually buy positions and hold them for longer periods and take advantage of higher prices, so that they logically want beef markets. An investor can take a short-term position or sell an asset if he takes a bearish view of the asset, although the maximum he can achieve (in almost all cases) is 100% profit if he sells it at the absolute top and rides the asset. Zero. On the other hand, asset prices can rise indefinitely, providing potential returns of more than 100%.

When we talk specifically about cryptocurrencies, why does an investor or trader need to lower the price of Bitcoin (BTC) or a particular alternative currency, even though it is generally optimistic for the cryptocurrency industry? One of the reasons may be their position. If a trader moves down in BTC – and waits for the next price drop – he can go short in BTC, so it makes sense for him to wish that the price was lower as they would benefit from the decline in the asset.

Traders can be bearish in the short and long term, or vice versa. For example, they can expect the price of bitcoin to fall for several days or weeks, but eventually rise and return to a months-long bullish trend.

Investors or traders may also be bearish in the short term and bullish in the long run, as they want lower prices in the near future to buy certain assets at relatively lower prices. Conversely, a market participant may have an optimistic view in the short term with a long-term bearish outlook. They may think prices will rise due to noise or other factors, so they can buy or sell in the short term, and eventually expect to sell their positions eventually because they think the market is a bubble or something. this type.

It is important to note that defining both the short and long term in the markets can be subjective.

See what can cause silly or bearish sentiment
Bullish or bearish views on each person are likely to be influenced by a wide range of components such as charts, news and general knowledge. A market participant may think that bitcoin or altcoin is bearish in a certain period of time based on certain conditions or patterns on the chart.

They may also see assets as bearish in the long run after negative statements such as specific government rules. Optimism can be expected for a while depending on an upcoming event such as the launch of Bitcoin futures trading on the Chicago Mercantile Exchange.

Source: CoinTelegraph