A bullish market refers to a special market condition where the asset price is rising. The price is driven by positive market sentiment and strong economic data. The bullish market expresses confidence in the market where traders are willing to buy instead of selling the asset. 

The bullish market is also characterized by rising volumes and risk appetites. Moreover, when the market is bullish, many assets begin to grow, including currencies, stocks, indices, as well as cryptocurrencies. 

The idea of trading during a bullish market is to find optimal entry points and capitalize on rising prices. They tend to buy at the lowest possible price and hold their positions until they think the market may reverse at a strong resistance level.

How to Spot Bullish Markets

There are many ways traders to identify bullish markets. One of the most popular ones is using the trendline. It is built through the rising lows. Until the price remains above the trendline, traders can say that the bullish market is relevant. Apart from the trendline, market participants can use the following tools:

• Moving averages of different types, including their combination;
• MACD technical indicators;
• Bollinger Bands or Alligator indicators.