Bearish is a term used in the cryptocurrency market to describe when traders and investors expect prices of digital assets to go down. A bearish sentiment or outlook indicates that an investor believes prices will decrease, which can be caused by any number of factors, including economic conditions or negative news about a particular asset.
A bear market occurs when trading activity shows significant downward pressure on an asset’s price over time. It is usually identified as being more than 20% below its peak value within 6 months or longer before it begins recovering again. In some cases, a bear market may persist for several years if there are no major catalysts driving up the price of the underlying asset.
In order to protect themselves from losses during times like these, many crypto traders use strategies such as hedging (which involves investing in other assets that might potentially perform better) and stop-loss orders (which close out trades at predetermined points). Additionally, they also take steps such as diversifying their portfolios across different types of coins so that one currency does not dominate their holdings too heavily should its price suddenly drop dramatically due to unforeseen circumstances beyond their control. Finally, savvy investors look for opportunities where they could potentially buy into digital currencies cheaply while others panic sell them off because this often presents itself with good returns once things start going back up later on down the line again eventually after all has been said and done in regards towards overall final results yielded forthfrom engaging therein thusly!
