How to Tell the Difference

TL;DR:

Not sure if you’re in a bull or bear market? This guide breaks down how to spot the difference using price action, volume, sentiment and onchain data. Learn how to recognize market cycles, what signals to watch for and how to adjust your strategy for each phase so you can trade smarter.

Crypto markets can feel like emotional rollercoasters, prices soaring one month, then crashing the next. You’re not alone if you’ve ever wondered whether you are in a bull or a bear market.

In the simplest terms:

• A bull market is when prices keep going up, people are excited and there’s a general sense that the future is bright. Think back to late 2020 and early 2021; Bitcoin (BTC) climbed from around $10,000 to nearly $70,000. New projects were launching daily and it felt like everyone from your cousin to your Uber driver was buying crypto.

• On the flip side, a bear market is when prices drop consistently, investors pull back, and sentiment sours. A good example? 2022. After hitting all-time highs, the market tumbled. Bitcoin fell below $20,000, projects collapsed (remember Terra?), and even veteran traders started discussing “building in the bear.”

Knowing what kind of market you’re in helps you make smarter moves, and that’s why this all matters. You don’t want to ape into memecoins during a downtrend or panic-sell just before a rebound. 

Recognizing market phases helps you invest more strategically, manage risk and crucially, keep your emotions in check. Which, in crypto, is half the battle.

Did you know? In 18th-century England, “bearskin jobbers” were early short-sellers, traders who sold bearskins they didn’t yet own, betting prices would fall. The saying “don’t sell the bear’s skin before you’ve caught the bear” stuck, and so did the metaphor. The term bull came later, not only as the bear’s opposite, but also because of the upward motion of a bull’s horns when attacking.

Understanding bull and bear markets

Sure, crypto is “numbers on a chart.” But, it’s also stories, headlines and entire communities’ constantly shifting mood. Here’s how to understand bull and bear cycles: 

1. Bull market characteristics

a) Sustained price increases

Prices rise in a bull market, sure. What’s more important is that they keep rising, often over weeks or months. You’ll see major coins climbing steadily and altcoins riding the wave. 

A textbook example? Bitcoin’s run in 2020–2021, where it jumped from ~$10,000 to $69,000. That rally had…