Cryptocurrencies are known as an asset with high volatility
which might be a good or a bad thing depending on who you ask
because it means "high-risk, high-reward."
As a result, “bullish” and “bearish” have become some of the most common terms to describe market trends.
To traders, acquiring the ability to analyze these two states is a survival skill to predict future scenarios to gain or protect their funds.
Will the market swipe downwards with its claws or thrust its horns upwards?
Today, I'm going to teach you how not to get your portfolio killed by either one.
Let's get it.
Welcome to BitBoy Crypto! The hardest working channel in all cryptocurrency.
If you're new, hit that Subscribe button and check the description for links you can use to connect with me and the BitSquad.
Alright, guys.
In this video, we will be talking about what bull and bear markets are and which one is more favorable for trading.
Let's start by looking at some of the most basic definitions of bullish and bearish,
just to refresh your memory.
These two terms are very popular when looking at price charts,
where an uptrend is known as a bull market, and a downtrend as a bear market.
Just as I said in the introduction, the bear swipes downwards, while the bull thrusts upwards.
These two trends are an essential part of technical analysis.
In this technique, crypto traders will watch the price developments throughout a period;
then based on historical data, make judgments and predictions about possible upcoming adjustments in the short term, medium or long term.
In the basic understanding, there are three main types of trends in a price chart.
An uptrend is getting higher, a downtrend is getting lower, and a sideways trend, in which the price hovers around the level without a big change.
The average trend in the market will be what is used to talk about a bearish or bullish market.
In the charts, the bullish trends are usually displayed in green, while the bearish are in red.
Sometimes, or on some exchanges, they show the bullish in white and the bearish in black,
so don't get confused if some site decides to be unique.
Professional traders often define a bull market as a rise of over 20% in the price occurring between two declines of 20%.
On the other hand, a bear market is a situation where a decrease of more than 20% takes place after a rise of 20% and before another 20% rise.
whoa
But these definitions go beyond the scope of this video.
Speaking of bull and bear, I suppose you guys all know this fundamental rule.
A bullish trend is a sign for buying, as you may want to pick up more,
while a bearish trend blows a stop whistle, giving you a warning for selling before the market falls into a slump.
You follow me so far?
There are other terms though that you should be aware of as well.
Let me list them here.
First, let's get to know resistance and support.
“Resistance” refers to a level at which a bullish trend is expected to bounce,
and the “support level” is a line where bearish trends are projected to halt.
These two indicators are demonstrated by flat lines in the chart and are important for you to recognize remarkable points throughout the price movements.
Let's go from basic to advanced now,
starting with how to read candlesticks to predict the future,
just like fortune tellers do.
Call me now for your free reading.
Do people say that anymore? I don't think so.
In this room, you shall discover if you possess the Sight!
[children laugh]
There are several common scenarios that candlesticks can describe depending on its type.
The “hammer type” with a green bowl on the top of the line, indicating the market is moving down sharply before recovering at the close.
Reversely, we have the “inverted hammer” candlestick with a bowl sticking to the bottom of the line,
while implies that the price underwent both an uptrend in a downtrend in one session and now just began to move up a bit.
Similarly, we have two typical types of bearish trends.
A bear on the top is called a “hanging man”,
which happens when a recession is starting to take place after the price rose to the highest point in the session,
while a “shooting star” candlestick is a bear lying in the bottom,
showing a severe decline to a lower point compared with the opening price.
Now, let's talk about “head and shoulders”.
No, not that head and shoulders, you itchy head.
I'm talking about market scenarios known as “head and shoulders” and the “reverse head and shoulders”.
I know. They're so creative with these names.
A head and shoulders scenario shows a pattern in which a bullish trend is turning bearish.
It resembles a big head and two shoulders on the head sides,
because that's where shoulders go,
with the peaks lower than the highest point of the head.
It indicates a big slump might be following.
So, the red flatline, known as the neckline, is the final call for selling.
On the other hand, the reverse head and shoulders pattern gives us a forecast for an uptrend,
with the neckline being the signal to buy.
Or if you don't like graphs, you can just remember it this way.
Just think about the name of the shampoo.
I know it seems kind of dumb,
but when you can associate something like a shampoo with a chart,
you'll probably remember it a little bit better.
Alright, let's look at the ascending/descending triangles.
Technically, an ascending triangle is commonly used to illustrate a bullish trend,
where the resistance level and the higher lows meet up at the breakthrough point,
which is a signal to buy.
Conversely, a descending triangle indicates a downtrend in which the lower highs and the support line are connected at the breakthrough point, signaling to sell.
Last but not least, I'm going to show you the third common pattern pair which is a bull flag/bear flag.
Just like its name, a bull flag resembles a flag on a pole, representing a rally in the price.
In this pattern, the sharp rise is pointed out by the pole, which will possibly be followed by a bullish breakout.
Let me repeat that.
The rise is measured by the pole, not the flag.
That's when traders get the signal to absorb more supply.
In contrast, a bear flag indicates a drastic drop in the price and the pole highlights the mark where the price is consolidated.
After that, a bearish breakout will burst out.
You might want to sell your crypto as soon as possible.
Wow, my head's really spinning after talking about all that geometry and zoology.
I gotta admit, I hate math, but I love animals.
The sum of the square roots of any two sides of an isosceles triangle is equal to the square root of the remaining side.
That's a right triangle, you idiot!
But you know, I do love counting money.
And I hope you guys don't mind looking at all these crazy shapes and figures
because they are extremely important if you want to master the bullish and bearish analysis technique.
What I've just mentioned is only an elementary school lesson though.
There are other elements and factors you have to take into account when analyzing crypto bullish and bearish.
But for now, let's start with the basics and practice to make perfect.
Sooner or later, I bet you will no longer fear the bulls or the bears.
But now it’s your turn.
What is your prediction for crypto?
Is it bullish or bearish over the next few days?
Do you think that there are other analyses and tactics more efficient to hold on to?
Let me know what you think in the comment section below.
I hope you enjoyed this video.
If you did, please make sure to smash the Like button and hit the Subscribe button to become a member of the BitSquad.
Thank you so much for watching.
Have a blessed day.
BitBoy out.