Definition ∞ Bull market defense refers to strategies and actions taken by market participants to safeguard profits or minimize losses during a strong upward price trend in digital assets. This approach involves employing tactics like setting stop-loss orders or taking partial profits to protect capital. It recognizes that even within an overall rising market, corrections and volatility can occur. The aim is to mitigate adverse effects from sudden price reversals while remaining exposed to potential further gains.
Context ∞ The concept of bull market defense gains prominence in crypto news when analysts discuss risk management during periods of rapid asset appreciation. Commentators often highlight its importance for investors seeking to avoid relinquishing gains during unexpected market pullbacks. As digital asset markets are known for their volatility, the discourse around effective defense mechanisms during prolonged upward movements remains a constant topic.
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