In an uncertain and volatile market like financial and crypture, it is necessary to understand the differences and care during high and low cycles.

Difference and precautions in cycles of Bull Market and Bear Market

Understanding the concepts of the financial industry helps investors to avoid, for example, losses in the cryptocurrency market. After all, what are differences and investment care in the cycles of Bull Market and Bear Market

In the investment world, two terms are used to identify high and low moments for stock prices and other crypto market trends. One is called Bear Market and the other Bull Market, thus called by language figure.

In English, “Bull” means bull, while “bear” is bear. In the United States (US) market, the concept that the bull bull up and up is used, while the bear attacks from top to bottom. It is these movements and concepts that explain the concepts of Bear and that of Bull Market.

Bear Market ongoing does not necessarily mean the exit of a discharge scenario. It is characterized by a long drop of at least 20% in prices compared to the last top, regardless of what was the previous trend, explains Futokens CEO, says Matheus Medeiros.

Bull Market indicates the opposite scenario, leaving from the bottom up, appreciation, optimism, high employment rate and crypto market operating in discharge. These are some signs that indicate this positive cycle in the investment world.

In the midst of this scenario of Bear and Bull Market, there is the moment of transition the cycles, which can complicate the lives of investors who are not trying to change. A person can do his action at a good time in the crypto market, but not realizing a drop of falling soon and seeing his investment to be devalued, causing worries and anguish, adds to Medeiros.

Cypto cycles and scenario changes

There is a possibility to evaluate the change of cycles to minimize complications in these scenarios.

Searching market data, analyzing inflation, interest rates and the international framework is a way to be careful. It is not possible to predict what will happen, but there are trends that, being followed, soften damage, he said.

In both Bull and Bear Market, it is also necessary to emotional investor control to have their returns and avoid surprises, as Medeiros explains.

Expectations for easy or fast return can cause excessive confidence, which if not well calculated, result in losses. The market, as much as it is on the rise, will at some point its bias will be low. Therefore, it is important to calculate each step, even if the trend is growth, evaluates Futokens CEO.

Understanding the movement of the crypto market is also a determining factor in avoiding frustrations. Knowing what you are buying and the invested amount is also critical, as well as understanding if your investment is short, medium or long term.

It is not possible to predict when Bitcoin will enter the Bull Cycle or Bear Market, but it is possible to be careful.

For Medeiros, the value tends to fall into times that investors are less likely to risk. Already in times of greater euphoria, the tendency is for an increase until reaching the peak, and then has a trend of falling

Market concerns about US inflation collaborate for a time of fall. Moments of greater security in the market valued the asset.

Investors start looking at Altcoins in search of opportunities as it is not just Bitcoin that provides profits. However, it is necessary to have a strategy to succeed in action.

Be aware of price variations, sell currencies at times of high for profits, not hold them too much, and have a control to manage all altcoins are strategies to succeed in investing. Managing the risk is of paramount importance to continue investing even at a time of loss.

The Power of the “Whales”

In the crypto world, the so -called “whales” are people or entities who have an abundance of cryptocurrencies and who make great transactions.

Whales have the “power” of influenced the whole market through their movements. By buying a large amount of an asset, coupled with other factors such as institutional adoption, global liquidity and macroeconomics, they can start Bull Market.

If whales distribute part of their assets, they tend to enter a low bias, reinforcing the concept of Bear Market.

How does halving influence BTC discharge?

Bitcoin’s so -called halving can help boost Bull Market. This event takes place every four years, the last time in April 2024. In it, there is a reduction in half the creation of new bitcoins, which affects the circulation of new assets.

With the reduction of new bitcoins in the market, it creates an appreciation in the price of current, as production is lower. With the reduction in production and the increase in demand, historically, the price of Bitcoin tends to rise after halving, concludes the Futokens executive.