Understand Bear Markets and Bull markets

What does the bear symbol mean in the stock market as well as in the cryptocurrency market. We often hear the terms “bull market” and “bear market” in technical analysis, so what exactly is it, let Kada 4 Web Coin learn through the article below. .

Most famous of all, it is a huge cow statue standing on the side of the road leading to Bowling Green Park, very close to Wall Street, so it is also known as the Wall Street Bull.

This bull is a sculpture by artist Arturo Di Modica, in heroic bronze that symbolizes the power of Americans to do business after the 1987 Wall Street stock market crash.

This cow appeared on many sidewalks of New York City but then has stood firm on the side of Bowling Green Park since December 15, 1989. Bull headed toward Broadway, known as the capital of American theater. Mr. Di Modica described the bull in a state ready to plunge forward, kicking all barriers to symbolize the acceleration and strong development of the stock market. Over time, the bull statue became more and more famous with the development of the New York stock market. No tourists visit Wall Street Financial District but forget to visit cows, take commemorative photos with cows.

Famous bull symbol on Wall Street

So what is “bear market” and “bull market”? What does it show market trends and say what? Here, let’s learn about these terms.

Concept

Bull market refers to a market that is on the rise. That is characterized by a steady increase in the market price of shares. During the time when the market is a “bull”, investors believe that an uptrend will continue.

A bear market is one that is in decline. CP continuously dropped and as a result, a slippery trend that investors believe will continue for a long time.

Characteristics of the market

Securities supply and demand

In a bull market, the demand for stocks is higher than the supply. In other words, many investors wanted to buy, while very few wanted to sell. As a result, the share price increases. In the bear market, meanwhile, more people want to sell than buy. Demand is significantly low compared to supply and inevitably leads to lower CP prices.

Investor psychology

In the bull market, most investors are interested in the market, ready to participate in the market hoping to make a profit. On the contrary, in a bear market, investor sentiment is negative, causing them to flee the market and this sometimes pushes the market down further.

Change in economic activity

A bear market is often associated with a weak economy, when most firms are not highly profitable. This drop in returns will, of course, directly affect the way the market values ​​the shares. In a bull market, the opposite happens.

Where do these terms come from?

There is actually no exact information about the origin of these terms, but here are the two most popular hypotheses:

About the characteristic of the morphology

Bears and bull markets are named in the way that these animals attack their victims. A gaur’s characteristic attack is that it raises its horns up front and attacks the front, while a bear will hit its victim hard.

Historically

The middlemen in the bear skin trade will sell the skins they never received, and in today’s terms, they are the short-sellers. securities decreased). After agreeing and fully committing to customers for the up-paid bear skins, these brokers will expect the price to buy bear skins from hunters in the near future to drop lower than current price. If that discount does happen, they will get a personal gain from the difference between the two prices. These middlemen are known as “bear”, short for “bearskin jobber”. And since then the term has been widely used to refer to someone wanting or expecting a market to go down.

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