Bear Market
What does a bear mean in Crypto?
A bear market in cryptocurrency is usually referred to as the decline of most tokens’ prices over a prolonged period of time. Typically, a 20% price fall is a benchmark for a crypto bear market condition. A bear market can be seasonal or long-term depending on various conditions altogether. The bear and bull market are derived from the image of each animal striking its prey. Both being predators with unparalleled strength, a bull attacks with the upward thrust of its horn while a bear attacks with a downward swipe with its paws, describing the market condition perfectly.
How do you identify a bear market in crypto?
The most apparent indicator is the prices of major tokens such as Bitcoin (BTC), Ethereum (ETH), or Binance (BNB). The prices of these tokens have been falling incessantly over the period of 4 months without a sign of recovery. In fact, the fall was even worse than most traders expected.
Moreover, traders can utilize some trading tools to help identify a bear market such as RSI, MA, and Market value.
What happens during a bear market?
During a bearish market condition, many investors are becoming risk-averse, meaning that they are uncomfortable taking risks like they normally do. Traders begin to trade defensively selling their assets to hold fiat money or other types of assets causing a decline in prices. The market sentiment is usually not active since investors fear further losses and don’t know when a bull will come back.
Are we in a bull or bear market 2022?
At the writing date of this article, July 2022, we are definitely facing a bearish market condition following these facts:
The prices of major tokens fell more than 50% from their recent highs The trading volumes of most tokens are undeniably decreasing. The market sentiment is inactive Investors lost their confidence in the crypto market
Putting these facts together, we can already conclude that we are in a bearish crypto market. And the scary thing is, no one knows precisely when it’s going to recover.
Is it good to buy in a bear market?
This solely depends on the insights of the traders whether you want to take action in the crypto bear market or not. You can gain a lot of profit if your judgment is right. However, on the other hand, if the trend continues to fall then you’ll fall victim to the current bearish trend. Most investors agree that it’s hard to make a profit in a bearish market than in a normal market condition, that’s why most people tend to seek profit in other markets instead.
Normally there are no short-selling tokens in the crypto market. However, traders can still do 2-way speculations through “future” products offered by most centralized exchanges.
Lastly, to give you the edge on either bull or bear market, Arken Finance offers a "Stop-limit Order for AMM” (SLAMM)" which allows users to do risk management and set conditional trading orders strategically. So it's easily to trade many token on Arken likes ACT.
Thank you and we wish you success in this bearish market!
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