Whoever wants to succeed in the crypto market must understand how trends work. Honestly, that’s the foundation. Trends have a characteristic: once established, they usually stay in that direction — until they no longer do. That’s why it’s crucial to know whether we are currently in a bullish or bearish market, or if a turning point is approaching.

Let’s start with the bullish side. The best trick is to look at higher timeframes — daily or weekly charts. No matter what happens on smaller timeframes, the overarching trend prevails. Professional traders take advantage of this: they observe pullbacks on the hourly chart to enter bullish trends on the daily chart.

How do you recognize a bullish trend? Very simply: the price makes consistently higher highs and higher lows. That’s the signal. As long as the lows are not broken, the upward trend remains intact. End of story.

In the bearish phase, it’s the opposite. Lower highs and lower lows — that’s your warning. The trend points downward, and many traders ignore this out of emotional reasons. They stick to their bullish view, even though the market structure has long been bearish.

The exciting question: where do you enter? Nothing moves straight up. On daily charts, it sometimes looks like consolidation, but the hourly chart shows massive declines of 30, 40 percent. When the price falls to the critical zone — to the previous higher low in a bullish trend or to the previous lower high in a bearish trend — that’s where an entry opportunity arises. That’s your setup zone.

The critical part: trend reversals. That’s where most people lose their money. They cling emotionally to their old thesis. The market was bullish, now it’s bearish, but they refuse to accept it. They keep buying as the price falls. Or vice versa: they stay bearish even though the trend has long turned bullish again.

How do you recognize a change? Using the same method. When a bullish trend breaks and the price falls below the higher low, that’s your signal: the trend has reversed. Some traders take profits here, others open short positions. Both are legitimate.

Switching from bearish to bullish is the other way around: when the price breaks through the lower highs and stays above them, the trend has turned.

The secret to survival is simple: be bullish when the trend is bullish. be bearish when the trend is bearish. Change your opinion when the trend changes. No emotions, no old beliefs. Only structure. That’s the path to consistent profits.