A bullish market is an optimistic market characterized by rising prices. In a bull market, there are more buyers than sellers. When a market, instrument, or sector is on an upward trend, it is generally referred to as a bull market.
Although the term bull market can be used loosely to refer to any strong market activity, it is often used in the financial markets when the price of an asset rises 20% or more from its previous low point.
Falling prices (bearish trend) create a negative market sentiment and as traders feel less confident, they tend to sell more and more, causing a further decrease in prices and often what is known as capitulation.
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