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What is Bull Market?

A sustained period of rising prices, broadly positive sentiment, and increasing trader confidence — typically defined as a 20%+ rise from a recent low.

A bull market is a prolonged period where prices trend upward and market sentiment is optimistic. In crypto, bull markets are typically driven by institutional inflows, positive regulatory developments, or major adoption events like Bitcoin halvings.

Defining a bull market:

Traditional finance defines a bull market as a 20%+ rise from a recent low sustained over an extended period. In crypto, where 20% moves happen in hours, bull markets are usually identified by multi-month uptrends and sustained higher highs.

Crypto bull market characteristics:

  • Bitcoin and Ethereum make new highs or approach previous all-time highs
  • Altcoins outperform BTC (the "altcoin season")
  • Funding rates remain elevated (longs pay shorts) for weeks
  • Retail interest surges — Google searches and exchange signups spike
  • NFT, DeFi, and new narrative sectors attract speculative capital
  • Trading in bull markets:

    Bull markets are deceptively easy — almost every long trade works. This builds overconfidence. The danger is loading up on leverage near cycle peaks, when the trend is about to reverse.

    Key risk: Bull markets end. Every crypto bull market since 2013 has been followed by a bear market with 70–90% drawdowns. Risk management matters most when it feels least necessary.

    Indicators of bull market exhaustion:

  • Extreme positive funding rates (0.1%+ per 8h)
  • Very high open interest relative to historical norms
  • Leverage ratio (OI / market cap) at multi-year highs
  • Widespread "supercycle" narratives
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