Bull market

A bull market is a sustained stretch in which prices keep rising, usually with growing trading volume and growing optimism. There is no official cutoff, but traders commonly call it a bull market once an asset has climbed roughly 20% from a recent low and keeps setting higher highs and higher lows. The term can describe a single token, a sector like meme coins, or the crypto market as a whole.

Mechanically, it comes down to buying pressure outrunning selling pressure. New buyers arrive, existing holders stop selling, and rising prices attract more attention, which brings in more buyers. Leverage, social media, and how easy it is to swap into a new token on a DEX all speed this loop up. Bitcoin usually moves first, large caps follow, and small-cap tokens tend to move last but hardest.

For someone buying small tokens, the catch is that a strong tide makes nearly everything go up, so luck can look like skill. Launches multiply, and so do rug pulls, honeypots, and pump-and-dump schemes aimed at people chasing gains. FOMO pushes buyers in late, often right before a pullback, and thin liquidity means your real exit price can be far worse than the chart suggests.

Before buying into a rally, check that the volume is real, how deep the liquidity is, how concentrated the holders are, and what the contract allows. A project that only goes up because everything goes up has not proven anything. Bull markets end, and historically small caps have often lost 70% to 90% from their peak once the trend turned. Decide your exit rules while prices are rising, size positions so a deep drawdown is survivable, and remember that nobody reliably calls the top.