What Does Bull or Bear Mean? Understanding Market Peaks and Turning Points in Crypto Trading

The crypto market stands at a critical juncture where distinguishing between bull momentum and bear warning signals becomes crucial. For traders unfamiliar with these terms, bull meaning refers to upward market movement driven by buying pressure, while bear meaning signals potential downside and selling sentiment. Currently, the market displays classic characteristics of both—a final bull surge combined with emerging bear market indicators.

Recognizing the Buying Climax: When Volume Spikes Signal Danger

A key warning sign appears when price accelerates dramatically on high volume during daily trading. This phenomenon, known as a buying climax, historically marks dangerous territory. After such aggressive buying pressure, markets typically transition into what traders call a distribution zone at elevated price levels. Here, institutional players quietly exit positions while retail investors remain bullish, creating the setup for a reversal.

The recent price action reaching 123218 exemplifies this pattern. The technical setup suggested a retreat should follow toward the 112000-110000 range—a natural correction after hitting key resistance. When price then quickly rebounded and tested previous volatility highs, it reinforced the probability of a secondary confirmation retest before further upside acceleration.

Technical Breakdown: From Secondary Peaks to New Highs

Market action around the 120800 level proved significant as daily candles continuously broke through this secondary high point. At this stage, adequate liquidity had accumulated. Traders holding short positions faced liquidations, yet the long upper shadow candlestick appearing at resistance levels indicated emerging selling pressure from those trapped at elevated prices.

What appeared initially as weakness through the inverted hammer pattern likely represented a baiting mechanism for short sellers. Short-term dynamics suggested bull covering activity would gradually overcome this resistance, with elevated probability of breaking into new territory. Such a breakout would signal entry into price discovery phase.

Targets and Consolidation Zones: Where Bulls Meet Resistance

Once new highs are achieved, the 128888 level emerges as the next significant resistance zone. Price discovery at this range would likely trigger high-level consolidation, characterized by repeated fluctuations between bulls and bears. Technical charts may develop a multiple top structure at this phase.

Critically, traders must monitor weekly MACD divergence—this indicator typically signals the beginning of bear market conditions. However, market execution may differ from projections; the actual strength revealed after breaking new highs will determine whether price reaches these targets or consolidates prematurely.

The Distribution Structure: Setting Up the Final Bull Peak

Within the 128888-130000 range, if consolidation establishes itself solidly, a top structure essentially forms. This represents the likely final distribution zone where the last wave of retail participation occurs before the bull meaning transitions to bear control. The market remains in final bull stage rather than false bear signals.

A near-term entry signal appeared around 119300, justified by continued technical demand for retesting previous highs. This represents a tactical opportunity before the broader bear market structure emerges on weekly timeframes.

The Bottom Line: Countdown to Market Reversal

The bull market is not distant from its conclusion. Multiple technical demands for return pin tops exist, and breaking previous highs appears highly probable as bulls complete their distribution. Once consolidated in the high-level range mentioned above, the structure essentially confirms both the final bull meaning and impending bear conditions. Weekly MACD divergence will serve as the definitive confirmation signal. Until then, expect continued testing of resistance levels and eventual establishment of the top formation—the final chapter of current bull momentum.