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How to Survive Bull and Bear Phases

· 3 min read

Crypto Market Cycles: Bull vs. Bear​

The cryptocurrency market, like any other financial market, moves in cycles.
Globally, it can be divided into two phases:

  1. Bull Market (Growth Phase)
  2. Bear Market (Decline Phase)

These cycles repeat every few years (sometimes decades), and understanding them is crucial for building a successful investment strategy.

Bull Markets​

During a bull market:

  • Prices rise across the board — Bitcoin, Ethereum, and nearly all other assets.
  • Media coverage turns euphoric: “Crypto is the future!”
  • New projects appear daily.
  • Speculators flood the market, chasing quick profits.
  • Headlines announce fresh millionaires.

💡 Key insight:
If you enter at the beginning of a bull run, it’s almost impossible not to make money.
But most newcomers arrive at the very end, when:

  • Prices are overheated
  • Valuations peak
  • A collapse is imminent

📌 Example:

  • The last bull phase began in early 2020 and ended in late 2021, with Bitcoin peaking at $69,000.
  • Most newcomers joined during the hype peak — right before the downturn.

Bear Markets​

During a bear market:

  • Bitcoin, Ethereum, and altcoins decline sharply.
  • Many projects collapse (or exit scam).
  • Media turns negative: “Crypto is a bubble!”
  • Panic spreads.
  • The downturn can last years.

📌 Historical examples:

  • After Bitcoin hit $19,000 in 2017, a three-year bear market followed.
  • After 2021’s $69,000 peak, a bear cycle began and extended through 2022–2023.

How to Navigate Cycles​

  • Don’t buy during euphoria.
    Entering when media screams about crypto usually means buying the top.
  • Accumulate in bear markets.
    That’s the time to buy strong, fundamental assets at discount prices.
  • Sell in bull markets.
    Take profits when hype is everywhere and valuations explode.

📌 Example:

  • 2018–2019 was a dead market — the perfect time to accumulate BTC, ETH, and altcoins.
  • Those who bought then were able to profit massively in the 2020–2021 bull run.

Bear Markets as Opportunity​

Ironically, when media screams “Crypto is a scam” and everyone panic-sells — that’s often the best time to buy.

But be smart:

  • Don’t go all-in at once.
  • Use portfolio investing to diversify risk.
  • Focus on strong assets like Bitcoin and Ethereum.

Long-Term Perspective​

For me, Bitcoin is the anchor asset.

  • I don’t care about its price in 1–2 years.
  • I buy with a 5–15 year horizon.
  • Bitcoin’s role as a future global asset matters more than short-term price swings.

Summary​

  • The market always has two phases: growth (bull) and decline (bear).
  • Accumulate in bear markets.
  • Take profits in bull markets.
  • Beware of euphoria: when everyone screams “crypto is the future”, it’s usually the first sign a crash is near.

Disclaimer: These materials are created for educational purposes only and do not constitute financial advice.