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In a bear market, prices are decreasing, there is a surplus of goods compared to the demand, and confidence is low. In addition to traditional markets like stocks, real estate, commodities, and bond markets, it is a commonly used phrase in the cryptocurrency market. Bears are pessimistic investors who predict that prices will keep declining.
The cryptocurrency markets are more volatile and smaller than conventional markets. As a result, extended bear markets that are more volatile are frequent. When a market's values drop by more than 20%, it is said to be in a bear market. Bear markets can be short-term or long-term cycles. The former can last for a few days or a few weeks, while the latter might last for years or even decades.
Predicting when a bear market in cryptocurrencies will end is challenging because of so many variables that could affect how people feel about cryptocurrencies as a whole. Given the numerous elements that contribute to the onset and continuation of a bear market, such as geopolitical developments, economic trends, interest rates, and investor sentiment, it is almost not possible to exactly predict how long a bear will market last. However, there are a few techniques you can employ to identify a probable range where a bottom might emerge — particularly, the average life span of previous bear markets.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
As an example, Bear markets have occurred many times in the past for bitcoin. Here's a quick overview of the most important ones so we can see what we can take away from them.
2011-2012 bear market
Before many people were even aware that bitcoin existed, the worst bear market occurred. The price of bitcoin hit approximately $30 more than ten years ago, but that was quickly followed by a "stairway to hell" pattern that sent the price down to $2.10 in a matter of months, and then fluctuated sideways for several months.
2014-2016 bear market
The price of bitcoin drop from $1,135 on December 4, 2013 to $175 on January 14, 2015. Two significant events occurred at the beginning of 2013/2014: the closure of the Silk Road marketplace and the collapse of the Mt. Gox exchange. These were the two most possible reasons of the bear market. And when the price finally breached the previous all time high in early 2017, it never fell below $1000 ever again.
2018-2020 bear market
The price fall of Bitcoin from $19,640 on December 16, 2017 to $3,185 on December 15, 2018, is one of the most well-known ‘crashes’ in its history. This bear market was quite difficult; the term ‘the crypto-winter’ is occasionally used to refer to the most recent bear market because the main shakeout and the decline to the low of $3,000 occurred over the winter of 2018–2019. When the price reached $12,000 because of the fake rally in the spring and summer of 2019, it fell back to $4,000 when the COVID-19 panic hit in March 2020.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
In a bear market, prices are decreasing, there is a surplus of goods compared to the demand, and confidence is low. In addition to traditional markets like stocks, real estate, commodities, and bond markets, it is a commonly used phrase in the cryptocurrency market. Bears are pessimistic investors who predict that prices will keep declining.
The cryptocurrency markets are more volatile and smaller than conventional markets. As a result, extended bear markets that are more volatile are frequent. When a market's values drop by more than 20%, it is said to be in a bear market. Bear markets can be short-term or long-term cycles. The former can last for a few days or a few weeks, while the latter might last for years or even decades.
Predicting when a bear market in cryptocurrencies will end is challenging because of so many variables that could affect how people feel about cryptocurrencies as a whole. Given the numerous elements that contribute to the onset and continuation of a bear market, such as geopolitical developments, economic trends, interest rates, and investor sentiment, it is almost not possible to exactly predict how long a bear will market last. However, there are a few techniques you can employ to identify a probable range where a bottom might emerge — particularly, the average life span of previous bear markets.
As an example, Bear markets have occurred many times in the past for bitcoin. Here's a quick overview of the most important ones so we can see what we can take away from them.
2011-2012 bear market
Before many people were even aware that bitcoin existed, the worst bear market occurred. The price of bitcoin hit approximately $30 more than ten years ago, but that was quickly followed by a "stairway to hell" pattern that sent the price down to $2.10 in a matter of months, and then fluctuated sideways for several months.
2014-2016 bear market
The price of bitcoin drop from $1,135 on December 4, 2013 to $175 on January 14, 2015. Two significant events occurred at the beginning of 2013/2014: the closure of the Silk Road marketplace and the collapse of the Mt. Gox exchange. These were the two most possible reasons of the bear market. And when the price finally breached the previous all time high in early 2017, it never fell below $1000 ever again.
2018-2020 bear market
The price fall of Bitcoin from $19,640 on December 16, 2017 to $3,185 on December 15, 2018, is one of the most well-known ‘crashes’ in its history. This bear market was quite difficult; the term ‘the crypto-winter’ is occasionally used to refer to the most recent bear market because the main shakeout and the decline to the low of $3,000 occurred over the winter of 2018–2019. When the price reached $12,000 because of the fake rally in the spring and summer of 2019, it fell back to $4,000 when the COVID-19 panic hit in March 2020.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
