Definition ∞ A bullish recovery describes a period when asset prices rise significantly after a previous decline, indicating renewed investor confidence. This market condition reflects a shift from a bearish, downward trend to an upward trajectory, often driven by positive market sentiment, favorable economic indicators, or significant developments within the digital asset ecosystem. It is characterized by increasing trading volumes and a sustained ascent in asset valuations. A genuine bullish recovery typically involves broad market participation rather than isolated price movements.
Context ∞ Observing a bullish recovery in cryptocurrency markets is a frequent topic in digital asset news, often following periods of market downturns or “crypto winters.” Analysts often scrutinize technical indicators and fundamental news events to confirm whether a price rebound represents a sustained recovery or a temporary bounce. Understanding the drivers of such recoveries helps in interpreting market reports and investor sentiment surrounding various digital assets.