What is the difference between a bearish and a bullish market?

The most apparent difference between the two markets is their trends. A bullish market follows an uptrend and witnesses continually growing chart lines. However, a bearish market follows a downtrend and witnesses continually falling chart lines. 2. Current economic condition

What causes a bullish market?

A bullish market at times also occurs due to a bearish market. When the prices continually fall in a bearish market, optimistic traders enter the market and buy the currency pairs at low prices to sell them later at a higher price and make profits. This eventually increases their demand, and the prices start to rise again.

What is a bullish investor?

A bullish investor, also known as a bull, believes that the price of one or more securities will rise. This can apply at any scale of the market. Sometimes a bullish investor believes that the market as a whole is due to go up, foreseeing general gains.

What is a strong hand in a bullish market?

The investors that sell during bullish markets are called “weak hands.” Strong hands, instead, increase their positions when a dip takes place. As bull markets represent positive trends, bearish trends show negative trends in stocks, cryptocurrencies, or other financial markets.