Crypto Bear Market Financial Terms You Should Know

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OK, so we're in a bear market. But if you want to make it through without getting rekt, it's important to know the key terms used to discuss it. Don't worry, we've got you covered:

A technical pattern found on charts where the 50-day moving average crosses above the 200-day moving average, signifying a potential continuation of a bullish trend.When a business decides to cease operations, it sells its assets to pay off lenders and creditors. Investors can also liquidate their holdings to raise cash, exit a weak position or for other reasons.The ease with which a cryptocurrency can be swapped with another digital asset or fiat currency.

This is usually used in combination with technical indicators such as RSI or money flow indicator to measure the likelihood of rapid price decrease in terms of overbought state or bearish divergence.The risk-on risk-off theory states when the market or economy is in good shape, investors are more prone to buying riskier investments such as crypto or stocks. When the market or economy is bad, investors prefer safe-haven assets such as bonds or staying with cash on the sidelines.

 

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