Bull Run What Is It: Complete Guide to Identifying and Capitalizing on Bull Market Cycles

Have you ever wondered why Bitcoin and other cryptocurrencies surge during certain periods and then crash afterward? The answer lies in the concept of bull run, that market phenomenon that can turn a beginner into a millionaire or break their wallet in seconds. In this guide, we will uncover exactly what a bull run is, how to identify its phases, and, most importantly, how not to lose everything when the party ends.

What Is a Bull Run Really?

A bull run is not an arbitrary or magical phenomenon – it is a cyclical movement in financial markets where asset prices rise consistently over an extended period. Contrary to what many think, these bull runs do not follow a predictable timetable. They can last months or years, depending on a constellation of factors: technological innovations, regulatory changes, institutional adoption, and even investor collective sentiment.

The reason we call it a “bull run” is symbolic: a bull attacks upward with its horns, representing an upward movement. It is exactly the opposite of the “bear market,” where bears (“bears”) attack downward.

How Does a Bull Run Start?

A typical bull run emerges after a prolonged period of dormancy or price decline. The triggers are multiple:

Technological Events: The integration of cryptocurrencies into mainstream payment systems, important protocol updates (such as Bitcoin halvings) or revolutionary product launches.

Regulatory Approval: When governments and regulators signal openness to cryptocurrencies – whether through clear legal frameworks or approval of products like Bitcoin ETFs.

Institutional Acceptance: Major corporations announcing adoption of cryptocurrencies, pension funds entering the market, or traditional financial institutions launching crypto services.

Trust Recovery: After episodes of FUD (Fear, Uncertainty and Doubt), a series of positive news can restore market sentiment.

When Does a Bull Run End?

Identifying the end is the most difficult art. A bull run dies when:

• Prices reach unsustainable levels, creating a speculative bubble disconnected from reality
• Mainstream media interest peaks hysterically (when your grandma starts talking about Bitcoin at the barbecue, it’s time to sound the alarm)
• “Whales” (large holders) start selling massively, draining liquidity from the market
• Extreme volatility becomes unsustainable, frightening new investors

The Four Phases of a Bull Run: Understanding the Complete Cycle

Every bull run follows a psychological and behavioral pattern that repeats. Knowing which phase you’re in is critical for decision-making.

Phase 1: The Calm Before the Storm (Accumulation)

Prices are still depressed, but something silently changes behind the scenes. The “smart money” – experienced investors with insider information – begins to discreetly accumulate. The media ignores it, influencers stay silent, and most retail investors don’t even notice the movement.

Signs of this phase:

• Small price increases, almost imperceptible
• Low trading volume
• Very little media attention
• Overall market sentiment still pessimistic

Phase 2: The Awakening (Early Adoption)

As prices start to rise gradually, more attentive investors see the opportunity. Positive news begins circulating, technical analysts identify breakouts. Volume increases, but still without mania.

Signs of this phase:

• Moderate and steady price increases
• Bullish analyses from influencers appear
• New investors begin to enter cautiously
• Discussions about Bitcoin start to appear in WhatsApp groups

Phase 3: Euphoria (Speculative Mania)

This is where madness happens. Everyone wants in. FOMO is the prevailing currency. New assets are launched daily, memes about impossible gains circulate, and people who never invested before open accounts on exchanges.

Signs of this phase:

• Price explosion, usually vertical
• Record trading volume
• Altcoins multiplying 10x, 100x in days
• Sensational headlines: “Bitcoin will hit $200K!”
• Crypto YouTubers gaining more subscribers than ever
• Your Uber driver offering tips on how to get rich with cryptocurrencies

Phase 4: The Reality Hits (Deflation/Correction)

The market realizes that prices do not match reality. Initial sell-offs begin. Large holders (whales) start liquidating positions. Negative news that was ignored during euphoria now dominates headlines.

Signs of this phase:

• Sharp and rapid price drops
• Liquidations of leveraged positions
• Panic among investors
• Weeks of constant red
• Sentiment shifts from “I will get rich” to “I lost everything”

Practical Indicators to Detect the End of a Bull Run

There is no “absolute stop” signaling the top, but there are clues that reduce risk:

1. Price Chart Shows Divergence

When the price hits all-time highs but trading volume decreases, it’s a warning sign. Buyers are weakening.

2. Technical Indicators Confirm Saturation

Relative Strength Index (RSI) above 70-80, Bollinger Bands extremely widened, and long-term moving averages beginning to slow down are classic warnings.

3. On-Chain Data Reveal Whale Sales

Tools like Whale Alert show large transfers of assets from old wallets to exchanges – a clear sign of selling intent. When multiple whales sell simultaneously, it’s critical.

4. The “Grandma Test”

If your grandma, your electrician, or that coworker who never cared about crypto is now investing “because it will triple,” you’re probably in advanced Phase 3.

5. Unsustainable Hype

When every conversation is about cryptocurrencies, when exchange apps are #1 in the app store, when unknown influencers promise astronomical gains – it’s time to get out.

Practical Strategies to Protect Your Capital

It’s not about predicting the perfect top – it’s about managing risk intelligently.

Set Your Profit Targets in Advance

Before buying, set a percentage gain at which you’ll exit. If you gain 50%, sell half. If you gain 100%, sell another half. If you gain 200%, liquidate the rest. Greed is the number one enemy.

Use the Staggered Selling Method

Don’t exit a position all at once. Sell 25% at the first target, 25% at the second, 25% at the third, and leave 25% to “catch the last gains of the bubble.” This strategy drastically reduces psychological risk.

Constantly Monitor Technical Signs

Use RSI, Bollinger Bands, and volume analysis. You don’t need to be a professional analyst – free tools like TradingView do this work.

Control Your Emotions

The biggest mistake isn’t technical – it’s emotional. When you see 300% gains, the temptation to “diamond hands” and hold is huge. When you see a 20% drop, panic to sell takes over. Develop a plan and stick to it, regardless of your feelings.

Consider Hedging (Protection)

If you have a large position in altcoins, you can hedge part of it in Bitcoin or stablecoins. It’s like insurance for your portfolio.

The Reality: Bitcoin Is Now at $86.17K, So What?

At the time of writing, Bitcoin is trading at $86.17K with a -3.92% decrease in the last 24 hours. Does this mean something? Yes and no. A 4% drop in a day is normal in crypto markets. What matters is: what phase are we in? Do technical signs point to the top? Do on-chain data show accumulation or distribution?

If you’re entering now, the question isn’t “Will BTC reach $100K?”. It’s: “If it drops 50%, can I sleep peacefully? Do I have enough capital for the next opportunity? Is my strategy clear?”

Conclusion: Preparing Is Winning

A bull run is not a predestined event you can simply passively enjoy. It’s a psychological cycle where fortune and ruin coexist side by side. Those who truly make money are not those who enter during Phase 3 euphoria – they are those who understand the entire cycle, set rational strategies, and have the discipline to execute them, even when greed screams in their ears.

Understanding what a bull run is, recognizing its phases, identifying its imminent ends, and acting based on reliable data is the difference between smart investing and reckless gambling. Always plan based on technical and fundamental evidence, not on hope or momentary emotion.