How to Trade & Invest Like a Pro in a Bull Market?



Bull markets happen all the time. In general, prices of assets tend to go up either driven by the market sentiment or inflation, or both. Many other factors can affect long-term price action changes. When you zoom in, bears and bulls are constantly tugging the price in their preferred directions. However, bulls tend to win more often not, again, on average.

What is a bull market? A bull run is a lengthy period in the market history when prices of most assets climb. The cryptocurrency ecosystem experienced multiple upward trends throughout the last decade.

Let’s learn how to invest in a bull market and which strategies to employ to achieve the best outcomes in the long run!

Investing in a bull market: pro tips

We will discuss isolated strategies and practical approaches to investing during a bull market further in this article. We must start with several general tips that will help you preserve assets and grow investments in the long run.

Here are rules to invest by when prices are climbing:

  • Do not miss an opportunity. It is important to identify a bull run early and focus on acquiring assets close to the local low. Using a variety of indicators like Relative Strength Index, Moving Average Convergence/Divergence, Money Flow Index, and others is a good way to catch the onset of a bull run that seems to be taking place in the moment. Buying assets in the earliest stages of a bull run is a guaranteed way to make profit.
  • Avoid huge losses on short positions. Trying to hedge against bearish movements and capitalize on short-term retracements by opening a couple of short positions is a good idea. However, you should know when to cut your losses and moving on. When a strong bull market takes shape, the safest decision is to liquidate all risky short positions and focus on trading in a bull market. Focusing on protecting your portfolio in a bull market is hugely important since rising prices may be dangerous for some investors.
  • Secure profits when necessary. Some investors hold the “buy and forget” strategy too close to their hearts and forget that taking profits is just as important as holding long-term assets hoping that they will appreciate. We do not want to invalidate many proponents of the “HODL” strategy, but it would be inappropriate not to remind them about the imperfection of the human mind. Bull runs end. Take your cut of the pie while you can!
  • Do not ignore price retracements. Even during massive bull runs, the market will often go down for short periods of consolidation or weak conviction. It means that you should try to capitalize on these movements and extract profits from falling prices. However, it is imperative to stay collected and immediately liquidate short positions if you feel that the sentiment is turning bullish again.
  • Employ effective automated trading strategies! During bull runs, a DCA or a GRID trading bot can deliver incredible results. The market is going up on average meaning that all positions on the spot market will be liquidated at a profit eventually. It is much safer to run these fully autonomous systems and collect profits consistently when the market is confident and prices are climbing.

These are general rules that will help you find the best investments for a bull market. Remember that you should try participating in the crypto ecosystem as much as possible during strong bullish trends and avoid rushed decisions when prices start going down. Panic selling during bearish markets and panic buying during bull runs can be detrimental to your portfolio.

Bull market strategies to use in 2024

Some very specific strategies work well during bull markets in crypto. You can focus on using these methods and make money quite reliably. There is a small caveat: you must have a very good grasp on technical analysis and some experience under your belt to use most of the strategies that we will discuss below.

Buy and Hold!

When investing in a bull market, you are hoping that prices will continue climbing. It means that many market positions that you opened early into the bull run must remain open until you find a good opportunity to liquidate them. Since prices go up on average, you can try identifying local lows and buy assets for short-term holding.

On the other hand, early stages of a bull market are great moments to continues expanding your holdings. Using fully automated trading systems like DCA is a good way to acquiring tokens while reducing the average cost of investments.

When to buy assets for this strategy?

1.   During bearish trends. If you have funds that can be used without any consequences to your financial well-being, consider using them to acquire Bitcoin or Ethereum during bear markets. Prices may go down significantly opening an opportunity for huge gains in the future.

2.   During significant price retracements. Use technical indicators like Volume RSI, Stochastic Oscillator, and Bollinger Bands to search for moments when the market tries to correct itself. Try catching local lows with DCA bots and increase holdings to liquidate them later.

Note that this strategy is one of bull market trading techniques suitable for investors with some free funds and diversified investments to fall back on if something goes wrong. Many individual retail traders will benefit more from using other types of strategies often involving active trading and the use of automated trading systems.

Momentum-based strategy

One of the core assumptions of the technical analysis theory is that markets tend to continue with upward momentum if the conviction of participants is high enough. If you see that the bull run is very strong and retail traders are making huge moves pushing prices up, it is a good idea to trade within the trend and buy now to sell later at a profit.

Here are some indicators that can help you find moments ideal for momentum trading:

  • Moving averages. Using three simple moving averages (SMA) with different periods is a good way of evaluating the strength of the current trend. Experimenting with settings is necessary to find the best combination of periods to use. However, the general rule is to have one SMA with a short period (3 — 5), one with a medium period (5 — 11), and one with a long period (11 — 21). When the lines converge, the trend is getting weaker. When they diverge, it means that the trend is strengthening.
  • Relative Strength Index. RSI is a powerful indicator capable of predicting price reversals and retracements. However, it can also be used as a momentum indicator since it shows when price action is stagnant. A sideways motion of the indicator during an uptrend indicates that the momentum is here and the asset is gaining confidently without many retracements and sudden price spikes. Use RSI in conjunction with other analytical instruments to identify good moments for entry.
  • Moving Average Convergence/Divergence. MACD is often used as the main indicator that produces trading signals for automated trading systems. If you want to learn how to invest in a bull market, you should start learning reliable indicators like MACD. It is simple and provides context to financial decisions by showing when the trend is strong (lines diverge) and when it is weak (lines converge or cross).

If you launch a GRID bot as one of preferred bull market trading techniques, it will technically engage in momentum trading. Fans of trading automation are encouraged to use a wide range of automation tools to build similar systems that capitalize on increasing prices.


Among strategies that work well in all scenarios, scalping is the safest yet capital intensive. When comparing bull market vs bear market situations, scalpers often say that working within upward trends is slightly better. However, it is more about preferences and risk styles rather than price direction.

Scalping is a technique similar to market making. Retail traders engaging in scalping work within spreads (gaps between bid and ask prices) and earn money by fulfilling market orders separated by a margin significant enough to cover commissions and other expenses associated with trading in both directions simultaneously.

The biggest downside of this trading method is high capital requirement. You have to be ready to enter the market at a moment notice and react to gaps that are occurring in real time quickly and decisively. Profits re relatively low, but with risk reduction techniques in place it is a very safe trading strategy during a bull market in crypto.

Engaging in scalping is a great way of trading in a bull market. However, you should be prepared to look for viable spreads and spend time and effort on building automatic trading systems that will place orders instantly. The competition between scalpers and money makers is quite fierce!

Opening long positions in the futures market

Among many important psychological tips for bull market trading, the one that should be repeated many times is “be confident”. Leveraged positions are considered dangerous to your portfolio (because they are), but they also promise the biggest returns. The futures market is very lucrative and provides plenty of opportunities to people willing to take risky market positions.

During strong bull runs in the crypto market, you can rely on the momentum to carry prices up for a long period. Open a couple of long positions on futures to extract bigger profits from price action. It is a good way of investing in a bull market.

There are several advantages to using futures:

  • You hedge against short-term price changes in the spot market.
  • Leveraged positions bring in higher profits.
  • It is easier to work with expensive assets.

You must have a margin trading account to access the futures market. Note that taking on debt to trade is something that only experienced investors should do. Newcomers are strongly encouraged against engaging in futures trading even if they have learnt how to invest in a bull market and have confidence in their analytical skills.

Novel ways of investing in a bull market

You can use innovative trading instruments to extract value from actively participating in the market during bullish movements. One of such tools is AI-enhanced automation. Recently, the WunderTrading platform has introduced a new exciting product — AI-assisted statistical arbitrage. It is a sophisticated multi-bot system that manages several market positions at once and adjusts the composition of your portfolio according to the circumstances in the market.

AI-assisted automation products are on the rise and promise newcomers to ease their way into the crypto industry. Experienced veterans can also benefit from this product by allowing it to pilot some market positions autonomously while focusing on acquiring assets for long-term holding or selling when prices rise.

If you are interested in using an AI crypto trading bot from WunderTrading, it is a good idea to start experimenting with it now when the development is still ongoing. Having a small edge over competitors is often enough to get ahead and earn money while others are trying to familiarize themselves with a new technology!

Another interesting idea is to employ triangular arbitrage bots and track strong bullish assets against tokens that do not have the same level of investment confidence. During bull runs pairs that include drastically different assets often present opportunities for profitable three-way trades.

The main takeaway

When a bull market in crypto starts getting momentum, you should be ready to utilize your whole portfolio in an effort to earn as much as possible. Using conventional techniques, common sense, tips from professionals, and a variety of trading instruments can be very effective during periods of positive market sentiment.

We suggest preparing for bull runs in advance by studying the market, analyzing price action, and trying to predict when the next upward price movement will occur. Being prepared is often enough to earn great rewards even without a degree in financial analysis!


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