In leukemia, the bone marrow is typically hypercellular with a predominance of immature blood cells or blasts. These blasts crowd out normal blood-forming cells, leading to anemia, infection, and bleeding. The type of leukemia (acute or chronic, myeloid or lymphoid) can often be determined based on the morphology and staining characteristics of the cells. For instance, acute myeloid leukemia (AML) may show myeloblasts with Auer rods.