Bull, Bear, ATH, Correction, Dip: The Words That Describe Every Market
Crypto people use these five words constantly. Here’s what each one actually means — no assumptions, no jargon.
Bull Market
A bull market is a sustained period of rising prices. Things are going up, people are optimistic, and the general mood is “we’re all getting rich.”
The name comes from how a bull attacks: it thrusts its horns upward. Prices going up = bull.
In crypto, a bull market usually means Bitcoin is hitting new all-time highs, altcoins are pumping, and your friends who never cared about crypto suddenly want to know what to buy.
A “bullish” person believes prices will go up. “I’m bullish on Solana” means “I think Solana’s price will increase.”
Bear Market
A bear market is a sustained period of falling prices. Things are going down, people are pessimistic, and the mood is “why did I put money in this.”
The name comes from how a bear attacks: it swipes its paw downward. Prices going down = bear.
In crypto, a bear market usually means Bitcoin is down 50%+ from its highs, altcoins are down 80-90%, and nobody wants to talk about crypto at parties. Bear markets are painful. They’re also where most long-term wealth is built — because everything is on sale.
A “bearish” person believes prices will go down. “I’m bearish on meme coins” means “I think meme coin prices will drop.”
ATH (All-Time High)
ATH means the highest price an asset has ever reached. “Bitcoin hit a new ATH” means Bitcoin just broke its previous record.
ATHs are psychologically important. When Bitcoin breaks its ATH, it makes headlines. New people enter the market. The “it’s different this time” energy kicks in.
But ATHs can also be traps. Buy at the ATH and you have no one above you — everyone who bought before you is in profit and might sell. You’re the last one in.
Correction
A correction is a price drop of 10-20% from a recent high. It’s the market “correcting” from being too optimistic back to something more reasonable.
Corrections are normal. In stocks, they happen every year or two. In crypto, they happen every few months. A 30% correction in Bitcoin is not a crisis — it’s a Tuesday.
The key distinction: a correction is a dip in an otherwise healthy trend. It’s temporary. It doesn’t mean the bull market is over.
Dip
“Buy the dip” is crypto’s unofficial motto.
A dip is a short-term price drop. Smaller than a correction — maybe 5-10% over a few hours or days. When people say “buy the dip,” they mean “the price temporarily dropped, this is a buying opportunity.”
The problem: you never know if a dip is actually a dip or the start of something worse. That 5% drop could recover in an hour. It could also be the beginning of a 50% crash.
The best way to handle dips: don’t try to time them. Buy small amounts regularly regardless of price. That’s called dollar-cost averaging, and it’s the most boring, most effective strategy in both crypto and stocks.
Want to understand the deeper forces driving these cycles? Read: CPI Explained and FOMC: Why Your Crypto Moves When the Fed Speaks.