Bullish and bearish

The words come from the bull, which strikes upward with its horns, and the bear, which swipes downward with its paws, images used in markets since at least the 18th century. A trader can be bullish on bitcoin over the long term and bearish on the next week, and the same terms describe news, chart patterns or data, as in a bullish breakout or bearish divergence.

In crypto the vocabulary is everywhere. Social media posts, research notes and headlines label developments as bullish or bearish, and positioning often follows: a bullish trader holds spot or opens long positions, while a bearish one sells, hedges or shorts. A bull market and a bear market describe sustained phases of rising or falling prices.

The labels are opinions. Calling everything bullish has become a running joke, partly because influencers with long positions have an interest in doing so. Asking what would make someone change their view is a good test of whether a bullish or bearish call rests on analysis or on hope.