Bear Market

A bear market is when the price of Bitcoin starts to fall and continues falling for a prolonged period of time by at least 20% as panic sets in from those who have no conviction and sell up.

You will see a lot of red candles in the price charts when in a bear market. Not only that but there will usually be lots of negative news, aka FUD which is designed to put you off too.

Often characterised by negative sentiment around the asset, some would say bear markets can offer a great opportunity to acquire more Bitcoin at a cheaper price. More would even say bear markets offer a good discount if you can stomach the sea of red on the charts it would be a good chance to stock up for the next bull market.

The reason for the term “bear market” is the way in which the bear attacks something, standing up on its hind legs and swiping down with both front legs with brute force, hence the link with the downward direction of the price charts.