bear market
What is a 'bear market' or ,bearish' trend?
A bear market describes mid- to longterm periods characterized by a negative market sentiment and rapidly falling prices. These factors in combination form a vicious downward trend (bearish) which may retain for several years.
We have experienced several bear markets since the introduction of Bitcoin in 2008. The fact that Blockchain is still a relatively new, cutting-edge technology makes the market sentiment turn over extremely fast, conversely bear markets generally sustain shorter.
HOW OCCURS A 'BEAR MARKET'?
A negative market sentiment is often caused by a weakened economy. When investors fear a strong correction this often leads in a self-fulfilling prophecy and may result in a mid- to longterm self-sustaining bear market.
THE DIFFERENT PHASES OF A 'BEAR MARKET'
A bear market goes through different phases before returning back to normalcy. The graphic below indicates you the path bear markets take after a huge crash.
